India not immune to global slowdown, but fundamentals strong: WEF

The World Economic Forum (WEF) is organising a two-day India Economic Summit (IES) in New Delhi from Thursday. WEF Managing Director Sarita Nayyar tells Indivjal Dhasmana that IES will bring together experts to accelerate the adoption of Fourth Industrial Revolution technologies so that South Asia can attain its growth potential. Edited excerpts:

The WEF is organising IES at a time when India’s economic growth has plunged to a five-year low of 5 per cent — in the first quarter of 2019-20. What solutions can be expected from the event on perking up growth in India?

The global economy is going through a significant slowdown and India, being one of the largest economies in the world, is not immune to it. It has witnessed a slowdown, largely because of the lack of purchasing power among Indian households that have drawn down savings and are tightening their belts. However, its fundamentals remain strong. With a stimulus announced by the finance minister, including a reduction in corporation tax rates, growth momentum should be restored.

But, what will IES do to revive India’s economy?

The WEF has been working closely with companies and the government for 35 years. The Forum’s South Asia regional community is committed to tackling challenges and ensuring the region’s long-term growth by strengthening multi-stakeholder dialogue and public-private partnerships. In addition, the Forum will launch a regional stewardship board, its highest consultative body for the region, bringing together a small group of notable leaders from the government, the private sector, academia and the media to support and advise the Forum on its agenda for the region.

The participants will help accelerate the adoption of the Fourth Industrial Revolution technologies and boost the dynamism of South Asia to attain its growth potential.

Why are you focusing on South Asia and Asean (Association of Southeast Asian Nations) this time?

With an 8 per cent gross domestic product growth in 2018, South Asia is the fastest growing region in the world and is home to three of its fastest-growing economies — India, Bangladesh, and Bhutan. India and South Asia’s role is critical to the sustainability of global economic growth and, if this is to be Asia’s century, the region’s role will be indispensable. More than ever before, the world needs to engage with India and South Asia, while the region must expand its leadership in a wide range of global initiatives. We will also address Asean and how the two regions will shape our collective future.

The theme of IES this time is adoption of the Fourth Industrial Revolution technologies in India. Will this help India come out of the slowdown?

The speed and scale of the Fourth Industrial Revolution can be overwhelming. Regardless of the economic outlook, advances in artificial intelligence or IoT (Internet of Things) will continue. It’s important for countries to work with business, civil society and international organisations to harness the capabilities of Fourth Industrial Revolution technologies.

Will the Fourth Industrial Revolution technologies be in line with our job priorities?

The Fourth Industrial Revolution blurs the physical and digital worlds. It crosses all borders and has impacted businesses across industries in different ways. The priority is to ensure we can shape the technologies to maximise their benefits and minimise their risks. 

Has the Centre for the Fourth Industrial Revolution in India, set up by the WEF, come out with solutions for India’s economic problems?

The Centre for the Fourth Industrial Revolution Network aims to help shape the development and application of the Fourth Industrial Revolution technologies in the global public interest while simultaneously minimising their risks. In October 2018, the Forum launched the Centre for the Fourth Industrial Revolution India — the fourth centre to be opened as part of this global network — in partnership with the Government of India. The centre will allow India’s policy makers and thought leaders to stay ahead of the curve by providing unique insights into new forms of technology governance and by connecting them with innovators around the world.

How is the New Vision for Agriculture project aiding food security issues of India? Will this also be focused in IES this time?

The New Vision for Agriculture India project builds an innovative partnership model for improving agricultural productivity and opportunities for farmers. In partnership with the government, the Agricultural Value System Partnership Platform, will support the Prime Minister’s vision of doubling farmers’ incomes by 2022.

Over the years, the WEF summit in Davos has occupied centre stage for bringing in various policy makers, corporate and social leaders on one platform. Can you say the same about IES? 

IES provides a global platform that helps business, society and government leaders interact and collaborate with their peers, with leaders across the region and around the world. IES has been a regular fixture in India for 35 years. We are seeing a greater regional influence this year as the importance of the meeting grows. This year, over 800 attendees will gather in New Delhi.