At the B20 Summit, World Economic Forum President Borge Brende highlighted the pivotal nature of India's G20 presidency, emphasising its growing global significance. With India poised to ascend to the position of the world's third-largest economy within two to three years, Brende highlighted the unique role India would play during its presidency in shaping the international economic landscape.

Brende said, “The G20 presidency of India couldn't have come at more pivotal time. India's importance is growing. At the World Economic Forum, we do expect India to overtake the role as the third largest economy in two to three years being larger than Germany and Japan.”

This projection, he noted, grants India a distinctive role during its G20 presidency. As a thriving and influential nation, India possesses the potential to foster consensus among other countries, even amidst a polarised world.

Brende emphasised the necessity for global agreements on issues transcending borders, such as climate change and pandemics.

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Commenting on the complex dynamics between the United States and China, Brende noted the ongoing efforts to manage their relationship. Despite the competition between these two economic giants, accounting for over 40 percent of the global economy, he expressed hopes that the consequences of their rivalry on global value chains would be mitigated. Concerns about new tariffs, reshoring, nearshoring, and decoupling were raised, with Brende cautioning against actions that could lead to a significant decline in global economic growth. Citing estimations, he highlighted the potential of complete decoupling to result in an 8 to 10 percent reduction in global GDP, akin to a deep depression.

Regarding the European economic landscape, Brende provided a nuanced perspective. While acknowledging stability, he noted challenges faced by the German economy due to shifts in energy supply and market dynamics.

Brende indicated that Europe might navigate the immediate future with natural gas and LNG during the upcoming winter months, but cautioned about future challenges and potential inflationary pressures.

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Amidst these complexities, he pointed out glimmers of hope in economies like France, Spain, and the UK. The French economy demonstrated growth, and contrary to expectations, the UK didn't slip into recession.

Brende underlined India's remarkable growth trajectory but also highlighted its interconnectedness with the global economy. He emphasized that India, too, would face challenges if confronted with sluggish global growth.

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