NEW DELHI: Prime Minister Narendra Modi on Wednesday urged global financial institutions to establish stronger support mechanisms to help countries in the Global South withstand economic shocks triggered by geopolitical crises, particularly the ongoing West Asia conflict and its impact on fuel, fertiliser, and food supply chains.
Speaking at an outreach session of the G7 Summit in France, Modi warned that disruptions in critical global corridors were disproportionately affecting developing economies.
“The impact of the West Asian crisis on fuel, fertiliser and food supply chains will have long-lasting consequences for the Global South,” he said and added that “the most vulnerable countries should not bear the burden of crises on their own.” Prime Minister said international institutions must be more responsive to external shocks affecting developing economies.
Modi stressed on the need to reimagine global connectivity through inclusive partnerships. Drawing on the India-Middle East-Europe Economic Corridor (IMEC), he proposed expanding similar initiatives across Africa, Latin America and the Pacific Islands.
“Like the vision of IMEC, can we work on connectivity projects with countries in Africa, Latin America and the Pacific Islands?” Modi asked. He suggested a new framework titled the International Mobilisation Partnership for Accelerating Connectivity and Trade (IMPACT), bringing together G7 capital, India’s talent pool, and ownership of Global South nations.
“By combining G7 capital, India’s talent and the ownership of Global South countries, we may also consider establishing an International Mobilisation Partnership for Accelerating Connectivity and Trade
(IMPACT),” he said, pitching it as a mechanism to accelerate infrastructure development and trade linkages across emerging regions. Modi also highlighted the demographic imbalance between ageing advanced economies and younger developing nations saying, “Today, many societies are becoming ageing societies while India and other countries of the
Global South have abundance of young talent, entrepreneurship and skills,” he said, calling for a Global Skills Partnership to enable structured skill mapping and trusted mobility of workers.
The outreach session brought together India, Brazil, Egypt, Kenya, and South Korea as invited partner countries alongside G7 leaders.
