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News: India must leverage international partnerships for ensuring a robust and sustained economic growth path.
Why International partnerships are important ?
Firstly, the COVID-19 pandemic has affected growth, trade and investments, and employment, among others. In this context, international cooperation is critical to combat the current & future challenges related to growth.
Secondly, strengthening global partnerships will help in building resilience to cope with the threats posed by pandemics and other man-made and natural disasters.
Thirdly, Global partnerships will help in building mutual trust and understanding by agreeing upon common rules and standards and sharing of best practices.
Fourthly, for India, integration with the world economy can help to attain a faster growth path.
What are the areas that necessitates international partnerships and how it can be done?
Sustainable Growth: Mechanisms for reviving growth in certain parts of the world should be coordinated effectively so as not to disrupt it in other parts of the world.
Because, Massive stimulus packages given to stimulate growth is currently posing risks to economic and financial instability.
Inclusive development: The issue of growing inequality of incomes among countries as well as within countries must be addressed.
Resilient Global supply chain: Partnership to build back resilient global supply chains is very critical. Because, the pandemic had severely disrupted the global supply chains and this has led to decline in trade.
Trade facilitation: Countries across the world should facilitate trade partnerships at both regional and multilateral levels to better protect consumers and producers. It can be done by promoting open and transparent markets, technical assistance and reduction of complex process and arrangements.
Entrepreneurship and innovation: New opportunities in potential high growth sectors such as manufacturing and start-ups must be leveraged. It will contribute to enhancing productivity and generating employment.
Digital economy: The rise of telemedicine, remote work and e-learning, delivery services, etc. necessitates equitable adaptation to advanced technologies and tools, building robust infrastructure, and occupational transitions. Skill development and worker training, investments in education and vocational training etc, should be focused to fill the technology gaps and to nurture new and existing talent.
Investments in innovation: Global collaboration in areas including research and development and Industry 5.0 and investments in digital and corporate strategy can become key drivers of industrial development.
Climate change: International alliances and cooperation on building sustainable solutions, green technology, resource efficiency, sustainable finance, etc., must be promoted to achieve sustainable development goals.
What is the way forward for India?
First, in the post-pandemic world, it will be critical for India to improve on its investment climate and target its export capabilities across sectors and regions.
Second, ease of doing business and new free trade agreements with major markets will help India to integrate closely with the world through trade and investment partnerships.
Source: This post is based on the article “The stepping stones in the post-pandemic world” published in The Hindu on 13th Dec 2021.