India’s potential to leverage global trends for its growth.

Source: The post India’s potential to leverage global trends for its growth has been created, based on the article “We should grab opportunities held out by uncertainty” published in “Live mint” on 21st January 2025

UPSC Syllabus Topic: GS Paper3- Economy- growth and development

Context: The article highlights five global trends shaping 2025: digital transformation, reduced globalization, advanced AI, decentralized organizations, and India’s demographic advantage. It emphasizes adapting to uncertainty, fostering innovation, and leveraging opportunities for growth, especially in technology, workforce, and economic resilience.

For detailed information on India’s potential to become a tech-driven economy in 2025 read this article here

What are the five major trends reshaping the world and how India can leverage them?

1. Dematerialization:

• Physical objects are being replaced by digital solutions, transforming industries.
• UPI processes over 14 billion monthly transactions, reducing cash usage. The healthcare startup Dozee uses AI to turn ordinary beds into remote health monitors, making diagnostics affordable.
• Opportunity for India: Promote digital solutions in industries like healthcare and financial technology to drive growth and innovation.

2. De-globalization:

• Trade disruptions and geopolitical shifts are reducing globalization.
• India’s ₹76,000 crore semiconductor incentive supports domestic production, reducing import dependence. The Atmanirbhar Bharat initiative aligns with global trends like friend-shoring, making India a significant player in global supply chains.
• Opportunity for India: Strengthen domestic manufacturing and reduce dependency on imports.

3. Agentic AI:

• Advanced AI allows seamless interactions, replacing traditional applications.
• Microsoft CEO Satya Nadella envisions AI agents directly handling tasks like taxes.
• Opportunity for India: Develop AI-based solutions to transform services like governance and customer care.

4. Decentralization of Organizations

• Technology disrupts hierarchical systems, enabling faster decisions.
• Bayer CEO Bill Anderson highlights the need for decentralized decision-making. This approach enables faster responses and innovation within organizations.
• Opportunity for India: Adopt decentralized models to foster innovation and efficiency.

5. India’s Demographic Advantage

• 65% of Indians are below 35, offering a massive workforce.
• Programs like PM Kaushal Vikas Yojana aim to address unemployment.
• Women-led startups are growing, but barriers like pay gaps and safety need attention.
• Opportunity for India: Leverage its demographic dividend to drive economic growth through skills and gender inclusivity.

Conclusion

India must use innovation, adaptability, and foresight to thrive in a changing world. Embracing uncertainty can unlock extraordinary opportunities for growth.

Question for practice:

Examine how India can leverage the five major global trends reshaping the world to drive its economic growth and innovation.