The size of the global economy doubled in the decade preceding the 2008-09 financial crisis, increasing from $31 trillion in 1999 to $62 trillion in 2008. The growth encompassed dozens of developing countries and emerging economies.

The rise of India along with other major emerging economies coincided with their push into the world’s richest markets in the US and Europe, and the creation of new ties of goods, money, people and ideas across and within countries and regions.

Prior to the global crisis, India along with other emerging economies had made a concerted effort to build interconnectivity within the developing world, fostering new ties around the exchange of goods, capital, people and ideas.

After the global financial crisis, there emerged a need for global forums such as the G 20 to cobble together a coordinated policy response. The emerging economies contributed to global recovery after the crisis. India too became more active in advocating reforms in the global architecture, at the G20 as well as the UN and other platforms. Various economic developments have made India more visible and hence enabled international collaboration between India and other economies. Currently, the emerging market economies continue to account for the bulk of global growth. India seeks a financial system that is balanced and driven by ethics.

Looking for balance In 2012, the G20 (excluding the European Union) comprised about 62 per cent of the world’s population; of this the G8 countries constituted only about 12.6 per cent. In the same year, India accounted for 17 per cent of the population, much more than that of the G8 countries put together. However, it lagged behind China, which accounted for 19 per cent.

The demographic significance the G20 countries such as India and China is likely to continue. India’s GDP grew at 4.8 per cent during the third quarter of 2013. India’s current account deficit was at $5.2 billion in the same period on the back of a turnaround in exports and decline in gold imports.

While in the short-term India’s economic growth and inflation will remain a challenge, the long-term fundamentals appear strong. India’s industrial growth is expected to expand and sectors such as infrastructure have immense scope.

Global context The G20 countries, excluding the EU, accounted for 77 per cent of world GDP in 2012. In the total share of 77 per cent, G8 countries accounted for about 49 per cent, the being contributed by 11 other member countries. China’s share was 12 per cent, India’s 3 per cent.

The Indian economy is one of the fastest growing in the world. In terms of purchasing power parity (PPP) India ranks third largest in the world, after the US and China (2012 figures). According to the PwC report, World in 2050 – The BRICs and beyond: prospects, challenges and opportunities , India is expected to remain in third place in 2030 and 2050 in terms of GDP at purchasing power parity (PPP) terms. It is expected to become a bigger consumer market as real wages increase and real exchange rates appreciate.

The G20 countries, excluding EU, accounted for 60 per cent of world trade in 2012. Trade grew at an compound annual growth rate of 12.2 per cent during 2000-08 with more than 20 per cent compounded annual growth rate (CAGR) in the case of G20 countries such as China, India and Russia. After a decline in 2009 due to the economic crisis, global trade recovered in 2010 and mid-2011 witnessing annual growth rates of more than 20 per cent.

Active engagement India’s share in world merchandise exports has been fast rising since 2004, reaching 1.3 per cent in 2009 and 1.5 per cent in 2010. It increased to 1.9 per cent in the first half of 2011, mainly due to relatively higher Indian export growth of 55 per cent compared to the 23.1 per cent world export growth.

Global GDP growth over the next decade will be divided equally between developed and developing nations, with the western world providing a steady engine of stability, and the developing countries the acceleration and the opportunity for change. India will be a key player amongst the developing countries.

After the global financial crisis, capitalism is being redefined and socialism altered across the globe. Its effect is being felt in countries such as the US and China. Mixed economies such as India are going to play a balancing role in global governance. Therefore, as a member of the G20, India will be actively engaged in global economic governance and in shaping the world order.

(The writer is Group CEO, Doha Bank)

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