Global economy shifting East; Global South must capitalise on the moment: Shaktikanta Das
Former RBI Governor Shaktikanta Das, now Principal Secretary-2 to the Prime Minister, has stated that the global economy is increasingly shifting towards the East, creating new opportunities for developing nations. Speaking at a RIS session on 'Navigating Uncertainty: The Global South and the Emerging New Economic Order', Das urged countries in the Global South to develop strategies around food security, trade, energy and jobs to benefit from the changing economic order.
Das highlighted that a series of global shocks—including geopolitical conflicts, trade restrictions and extreme weather—are putting pressure on growth and inflation. He noted that the ongoing conflict in West Asia has pushed up energy prices and renewed inflationary pressures. For Global South economies dependent on energy imports, higher energy prices can increase fiscal pressure while putting pressure on foreign exchange reserves. Das emphasized that diversification of the energy mix through renewables and biofuels can enhance energy security and economic stability.
Das identified five areas requiring greater attention from developing and emerging economies: food security, trade diversification, energy transition, macroeconomic stability and job creation. He stressed that global coordination, technology transfer and knowledge sharing within the Global South will be critical for promoting energy security and transition, noting that the Global South is steadily increasing its footprint in the global economy and geopolitics.
