Centre of forging partnerships

As India and the US work towards a trade agreement, the global economy is undergoing profound changes. Everywhere we look, norms that have long governed commercial operations and expectations - especially in technology, trade and energy - are being disrupted. For India, emerging as one of the world's leading engines of growth, these disruptions present a challenge, but also a great opportunity.

India's economic growth rate over the past decade - averaging more than 6% - has far outpaced the world. It has never been better positioned to exert its growing influence in markets and to help reshape the global economy in ways that spread prosperity, increase stability and promote sustainability. Doing that, however, will require India to develop deeper connections to capital markets in the US and elsewhere. And to persuade the rest of the world that stronger connections with India will increasingly serve their interests, too.

The good news is that India's leaders are working to do both. Over the past year, they have pursued new economic partnerships around the world focused on manufacturing, energy, critical minerals and other industries, including technology. Nearly 1 in 5 iPhones is now made in India. From smartphones to semiconductors, companies are looking to India as a place to manufacture and invest.


The energy industry offers a particularly promising example. As India's economy has grown, so has its demand for electricity, spurring enormous investment in clean power. Solar capacity has grown nearly 20x, making India the world's 3rd largest renewable market. That progress is attracting international capital, creating good paying jobs and strengthening India's energy security.

Finance is another place where even deeper connections can pay dividends. India's growing base of individual investors is putting more domestic savings into its markets, creating more capital to finance growth. At the same time, GIFT City is opening new doors to international investment, with banking assets there already topping $100 bn. Stronger connections between domestic and global capital can help finance India's next phase of growth.

India's finance industry is also benefitting from its educated workforce and technological innovation. Its homegrown digital payments system now handles roughly half of the world's real-time transactions, and its AI industry is rapidly growing. Earlier this year, Prime Minister Narendra Modi brought leaders from government, technology and business to New Delhi for the AI Impact Summit. The message was clear: as AI reshapes the global economy, India intends to help lead it.

Thanks to these and other developments, India's exports hit a record high last year while new trade agreements are opening more markets to Indian businesses, including January's landmark agreement with the EU. And all this success is built on a principle that is too often overlooked, especially in government cooperation.

I've always been a big believer in closer collaboration between government and business leaders. Each has resources the other does not, and each can deliver benefits the other cannot. Too often, though, old assumptions get in the way. The private sector views government as an obstacle, rather than a partner. Government views the private sector as a subject, rather than a partner.

The mission of Bloomberg New Economy Forum has always been to break down those barriers and build bridges across them. That is one reason the Forum is being held in New Delhi this week.

The goal is not to have people from different industries and political systems to agree on everything. It is to better understand one another's priorities, build relationships and find areas of common interest where cooperation is possible. At a time when competition is intensifying and sources of economic power are changing, that kind of dialogue is increasingly important.

Countries have every reason to build stronger and more diverse economic relationships. India's next chapter of growth can help the world write a better next chapter, too.