Reformulating international development financing

India's partnership for development with the Global South

India has become a significant proponent for the Global South, utilizing its democratic legitimacy and economic expansion.

It has historically been significant in the 1955 Bandung Conference, promoting decolonization and equality.

The establishment of the Non-Aligned Movement (NAM) in 1961.

Formed the G-77 in 1964 to encourage collaboration among developing nations.

India upholds this tradition with efforts such as advocating for the African Union’s membership in G20, which was embraced at the 2023 Delhi Summit.

India’s collaboration for development with the Global South has expanded considerably, with financial support almost doubling from $3 billion in 2010-11 to $7 billion in 2023-24.

Main engagement strategies involve capacity development, technology sharing, market access, funding, and concessional financing, especially via Lines of Credit (LoCs) within the IDEAS program.

Obstacles

The Global South encounters issues such as food scarcity, inadequate health infrastructure, indebtedness, conflict, and insufficient fair representation in international decision-making.

Amid growing global debt worries and liquidity challenges, India is reassessing the function of LoCs because of heightened risks and expenses.

Conventional development aid organizations (ODA) are experiencing budget reductions and a diminishing aid landscape, with a significant drop in worldwide assistance projected from $214 billion in 2023 to approximately $97 billion.

This decline jeopardizes advancements towards Sustainable Development Goals (SDGs), necessitating more than $4 trillion each year by 2024, in the face of pricier and more uncertain borrowing.

Choices

Triangular Cooperation (TrC)—a collaborative model that includes a Global North donor, a pivotal country from the Global South, and a third partner nation—provides a compelling option.

Nations such as Japan, Germany, Indonesia, and Brazil have effectively executed TrC initiatives, fostering collective learning and customized solutions.

India and Germany have launched TrC projects in Africa and Latin America, further backed by partnerships with the US, UK, EU, and France amid India’s G-20 presidency.

India's partnership for development with the Global South

India has become a significant proponent for the Global South, utilizing its democratic legitimacy and economic expansion.

It has historically been significant in the 1955 Bandung Conference, promoting decolonization and equality.

The establishment of the Non-Aligned Movement (NAM) in 1961.

Formed the G-77 in 1964 to encourage collaboration among developing nations.

India upholds this tradition with efforts such as advocating for the African Union’s membership in G20, which was embraced at the 2023 Delhi Summit.

India’s collaboration for development with the Global South has expanded considerably, with financial support almost doubling from $3 billion in 2010-11 to $7 billion in 2023-24.

Ideas and the Path Ahead

India's strategy is based on its inclusive development vision, "Sabka Saath, Sabka Vikas" and "Vasudhaiva Kutumbakam" (One Earth, One Family, One Future), which emphasises collaboration, self-determination, and collective development for a sustainable future.

Despite growing global inequality and dwindling development funding, India can contribute to the creation of a more resilient and inclusive global order.