PrintFriendlyGlobal South emerged in part to aid countries in the southern hemisphere to work in collaboration on political, economic, social, environmental, cultural, and technical issues. The Global South consists of developing countries across Africa, Latin America, Asia, and parts of Oceania, and has become a key player in the global economy. Its contribution to global GDP grew from 19% in 1990 to 42% in 2022, driven by nations like China, India, and Brazil. By 2023, four of the world’s ten largest economies were from the Global South, and this trend is expected to continue. The region also accounted for 65% of global FDI inflows in 2023.
For the Global South, India is not merely a partner, but a potential leader who understands and champions their aspirations for long-term development and shared progress by bridge between the Global North and South. Let’s delve in to the detail.
India: A Pivot of the Global South
India’s evolving engagement with the Global South underscores its ambition to shape a more equitable international order while fostering mutual growth with developing nations. Encompassing countries from Africa, Latin America, Asia, and the Caribbean, the Global South faces shared challenges of poverty, underdevelopment, and limited representation in global governance. India’s active role in this collective reflects both its strategic aspirations and its commitment to global solidarity.
Strategic and Economic Ties
India views its relationship with the Global South as essential for amplifying its voice in global affairs. Prime Minister Narendra Modi has consistently emphasized the importance of fair representation, noting that “three-quarters of the world’s population live in the Global South and should have an equal voice in international affairs.” This advocacy aligns with India’s broader efforts to reform global governance structures to reflect the realities of a multipolar world.
Economically, the Global South offers significant opportunities for India. In 2022, India imported 29.116 billion cubic meters of natural gas and 1.672 billion barrels of oil from these regions, supporting its growing energy needs. Simultaneously, Indian exports to these countries, such as $18 billion in pharmaceuticals and $10.3 billion in telecommunications equipment, have strengthened the “Make in India” initiative. This economic interdependence not only diversifies India’s trade partnerships but also reduces reliance on traditional markets in the West.The resource-rich Global South also enables India to secure critical materials, technology transfer, and collaboration in areas like renewable energy and digital infrastructure, essential for initiatives such as “Digital India” and “Green Growth.”
India’s Role and Importance in the Global South
India’s leadership within the Global South is evident through capacity-building and humanitarian efforts. With initiatives like a $2.5 million fund for trade promotion and a $1 million fund for enhancing trade policy capabilities, India is helping partner nations build robust economies. These measures are complemented by the “Development Compact” framework introduced by Prime Minister Modi, which emphasizes capacity building, technology sharing, concessional finance, and trade as cornerstones of engagement.
India’s role as a first responder in humanitarian crises, from providing aid in Papua New Guinea and Kenya to delivering essential supplies during conflicts in Gaza and Ukraine, showcases its ability to lead with empathy and action. Additionally, India’s G20 presidency offers a platform to unite Global South nations around pressing issues like economic growth, climate change, and sustainable development.
India’s growing trade with Latin America, now surpassing its trade volumes with Japan and South Korea, and its proactive stance amidst global geopolitical tensions, position it as a pivotal player in the Global South. By advocating for reforms in global governance, fostering trade, and leading through humanitarian and developmental efforts, India exemplifies its vision of a balanced global order. As India deepens its ties with the Global South, it not only bolsters its geopolitical standing but also reinforces a shared commitment to development, equity, and progress. In doing so, it sets the stage for a transformative partnership that redefines the global economic and political landscape.
South-South Trade: A New Economic Powerhouse
Trade among Global South nations has witnessed exponential growth, with South-South trade volumes surging from $2.3 trillion in 2007 to $5.6 trillion in 2023. This represents a growing economic interdependence within the Global South, marking a departure from traditional reliance on Northern markets. Today, South-South trade accounts for 25% of global trade, while North-North trade continues to decline, emphasizing the shift in economic gravity towards developing regions.
Regional economic integration plays a critical role in this transformation. Nations in Africa, Asia, and Latin America are prioritizing intra-regional trade through favorable agreements, bolstering resilience against global economic uncertainties. East Asia, in particular, has emerged as a hub for manufactured goods, with 76% of its trade in this category, while Africa and Latin America continue to dominate in natural resource and commodity exports.
The Global South’s trade reflects its economic diversity. Africa and Latin America rely on resource exports (77% and 54% of their trade), while East Asia leads in industrial production. Emerging global value chains (GVCs) are increasingly centered around Southern economies, boosting their bargaining power and technology-driven trade.
Political & Strategic Dimensions:
The Global South is increasingly advocating for a fairer global order. Home to 88% of the world’s population, these nations are demanding greater representation in international governance. The expansion of BRICS to include countries like Saudi Arabia and Iran underscores their growing influence. Shared histories of colonialism and economic dependency have fostered solidarity, enabling collective action on global inequalities and sustainable development.
Prime Minister Narendra Modi’s concept of a “Development Compact” highlights the Global South’s push for capacity building, technology sharing, and concessional finance. Through these modalities, these nations aim to address pressing challenges such as climate change, economic inequities, and technological disparities, further solidifying their role as champions of a balanced and inclusive global governance structure.
Despite its rising prominence, the Global South faces significant challenges. Economic disparities remain stark, with GDP per capita in the Global North still 3.2 times higher. Additionally, high debt burdens in many Global South nations constrain their developmental potential. Yet, a youthful population offers hope; 69% of youth in these regions believe in a brighter future, in contrast to declining optimism in developed economies.
India’s Balanced Diplomacy vs. China’s Debt-Trap Diplomacy:
India offers a more beneficial leadership model for the Global South compared to China, based on democratic values, balanced diplomacy, and inclusive economic growth. Unlike China’s often criticized authoritarian approach and predatory tactics, India’s democracy, respect for sovereignty and commitment to mutual partnerships position it as a reliable partner. India’s democratic governance promotes freedom, sovereignty, and local agency, empowering Global South nations through initiatives like the Indian Technical and Economic Cooperation (ITEC) program. This contrasts with China’s debt-trap diplomacy via the Belt and Road Initiative (BRI), which has burdened countries with unsustainable debt.
India’s strategic partnership with the United States, rooted in shared democratic values and cooperation in areas like technology, defense, and climate change, complements its historical ties with Russia. This balance is crucial for the Global South, as India can mediate between divergent global blocs, fostering dialogue and ensuring that developing nations’ interests are represented. Moreover, India’s non-aligned stance enables it to navigate complex geopolitical dynamics. While China often pursues a zero-sum approach to international relations, India’s inclusive diplomacy allows it to act as a bridge between the Global North and South, facilitating solutions to global challenges such as climate change, energy security, and economic inequality.
India’s leadership in climate change and renewable energy further differentiates it from China, which relies on coal. As a signatory of the Paris Agreement, India actively works towards renewable energy goals and champions sustainable development through programs like the International Solar Alliance (ISA). India’s humanitarian efforts, such as the “Vaccine Maitri” initiative, and its cultural diplomacy, including yoga and Bollywood, enhance its soft power, fostering goodwill across the Global South. In contrast, China’s transactional approach lacks the cultural connection that India offers.
Conclusion: A Transformative Force
The rise of the Global South signals a transformative shift in global dynamics, driven by its growing economic strength and unified political advocacy. This emerging bloc is reshaping global governance and economic structures, with India playing a central role in promoting a more inclusive and balanced global order. As the Global South strengthens regional ties, champions equitable governance, and harnesses its demographic potential, it is poised to redefine the global economic and political landscape in the decades ahead. India’s engagement with the Global South is a key component of its strategy to enhance international influence and build sustainable economic partnerships, ensuring the aspirations of developing nations are reflected in global policymaking.
India’s leadership in this context offers a model of collaboration that prioritizes democracy, inclusivity, and sustainability, distinguishing it from China’s often unilateral and exploitative approach. Through its balanced diplomacy, focus on capacity building, and respect for sovereignty, India has become a trusted partner for the Global South, advocating for both economic growth and the preservation of independence. In a world marked by shifting geopolitical currents, India’s role as a bridge between the Global North and South positions it as a crucial player in creating a more equitable and prosperous global order.
Citations:
https://www.rolandberger.com/en/Insights/Publications/Global-South-Beyond-BRICS.html
https://www.chathamhouse.org/publications/the-world-today/2024-02/measuring-power-global-south
https://carnegieendowment.org/research/2024/05/global-south-colonialism-imperialism
https://www.rolandberger.com/en/Insights/Publications/Global-South-Beyond-BRICS.html
https://unctad.org/news/reshaping-global-trade-how-developing-countries-can-strategize
https://www.csis.org/analysis/responding-chinas-growing-influence-ports-global-south
https://onlinelibrary.wiley.com/doi/pdf/10.1111/glob.12180
https://blog.mygov.in/editorial/india-offers-an-alternate-development-path-for-global-south-nations/
https://indianexpress.com/article/opinion/columns/india-development-global-south-9552729/
https://www.linkedin.com/pulse/india-voice-global-south-strategic-partnership-just-equitable-g-9b0ic
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