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According to the reports published by the Indian Government, India has a total economy of $3.74 Trillion. This makes India’s share in the global GDP to 9.3%. The entire world is aware that India will soon emerge as the third largest economy in the world and now that the G20 Summit has taken place in India, economists have come across a new question; What will be the impact of G20 on the Indian economy?
The past couple of months have been harsh for the entire world as there were recessions in most of the major economies. However, the Indian economy managed to sustain itself without relying on any international support. According to the International Monetary Fund’s (IMF) estimates, India will be the third-largest economy in the world in the next 4 years. The domestic and international demands for Indian products are cited as the main factors why India is the fastest-growing economy in the world. Let’s dig more into the impact of G20 on Indian Economy.
How Will the G20 Affect the Indian Economy?
With the commencement of the G20 Summit 2023 in India, the global leaders encountered the diversity in Indian culture. Recently, a video went viral where Diplomats and Ministers from the member nations visited the marketplaces in New Delhi and bought locally-made products. This created an opportunity for Indian manufacturers to increase their production as the demand for their products increased overnight.
The Indian Government and other economists were already aware of the fact that such an action would work in India’s favour and would have a positive impact on the Indian economy. Here are all the factors which will create an impact on the Indian economy in the post-G20 Summit period.
- Since India had the G20 presidency, it fostered the growth of products in demand in the domestic market.
- International trade can work in India’s favour, as there are food and fuel shortages, the supply chains are disrupted, and there is a need for a new trading system.
- The G20’s Trade and Investment Working team has been promoting resilient trade to enhance the participation of MSMEs in trade.
- India’s growth in innovation and technology has gotten a boost as multi-billion dollar companies like Apple, Tesla, etc. want to set up their manufacturing hubs in India.
- The tourism industry in India will grow as the number of international tourists is increasing every year.
- New opportunities will be created for MSMEs, both in India and abroad, which will play a significant role in the country’s economic growth.
- The government organised the meeting of the G20 in different parts of the country to showcase India’s culture and traditional values and its rich heritage sites.
FAQs
The G20 summit will affect the Indian economy in diverse ways, such as the cultural and traditional values will be highlighted, the MSMEs will get an opportunity to grow, India’s technology will improve, more and more people will get employment, etc.
The USA has the largest economy among the G20 member countries. Next in the line are China and India.
G20 is important because these nations are responsible for more than 85% of the global economy and trade. G20 consists of a total of 19 countries and the European Union.
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