Speaking to reporters on Tuesday, Shaktikanta Das, principal secretary-2 to Prime Minister Narendra Modi, put forward the view that economies at the developing stage, including India, would benefit from expanding their trade relationships and diversifying their energy sources as a way of managing exposure to global volatility.
Addressing a forum hosted by the Research and Information System for Developing Countries and the Delhi School of Economics, Das argued that nations of the Global South hold considerable assets — among them mineral deposits, farm produce, and young workforces — that could translate into greater collective bargaining power when those countries coordinate their efforts, adding that these economies together account for a large portion of the world's natural resources and human capital.
Solidarity among lower-income nations, he noted, could strengthen their collective bargaining power on matters ranging from trade and climate finance to technology transfers, supply chains, and the restructuring of global financial bodies.
He noted that ongoing armed conflicts in Ukraine and West Asia have laid bare the energy security risks faced by nations that depend on imports. He observed that volatility in international markets had placed mounting strain on government budgets and currency reserves, adding that broadening the energy mix could lower exposure to external shocks and build greater economic stability at home.
He argued that renewable energy sources and biofuels have the potential to strengthen both energy security and economic stability. With over 80 per cent of its petroleum needs met through overseas purchases, the country has contended with elevated energy expenditure amid volatile supply conditions.
Addressing elevated commodity prices, tightening financial conditions, and mounting debt burdens will require nations across the developing world to pursue fiscal adjustments and structural reforms, Das indicated. He went on to stress the importance of diversifying energy sources and building stronger national capacity.
Reduced fees on international transactions have enabled lower-income economies to integrate into worldwide supply chains, according to Das. Nonetheless, the expansion of trade restrictions and import duties has introduced fresh obstacles for enterprises, with Das urging nations across the developing world to adopt measures that bolster the competitiveness, dependability, and operational efficiency of their businesses.
Outlining a path to stronger employment figures and greater economic durability, Das pointed to infrastructure development, workforce investment, a regulatory climate conducive to business, and broader private sector involvement as foundational priorities. He argued that closer collaboration among nations of the Global South would strengthen their collective ability to safeguard their interests and address unilateral actions by more powerful states.
