Thus, “this will be a year for the Indian economy to strengthen its position on the global stage while the rest of the world grapples with an impending recession, war and inflation,” the Reserve Bank of India (RBI) said in its report on the state of the economy.

India is also striving to build a global manufacturing hub and become a preferred habitat for companies to shift their production bases.

Amid the ongoing megatrends, India would have a significant advantage owing to strong domestic demand, digitalisation, largest talent pool globally, financial inclusion, global competitiveness and sustainability transition,” EY, one of the leading professional services organisations, has said.

Here are some ways in which India is making this transition with a few goals and roles that India could pursue:Economic Reforms: India has implemented a range of economic reforms aimed at boosting growth and competitiveness, such as the Goods and Services Tax (GST), the Insolvency and Bankruptcy Code, and measures to liberalize foreign investment.

These reforms have helped to improve the ease of doing business and attract investment, positioning India as a key player in the global economy. India can continue to drive economic growth and prosperity, both domestically and globally. This could include further liberalization of its markets, investment in infrastructure, and fostering innovation.

Since India has a growing economy and a large young workforce, it could use this as an opportunity to drive economic growth and development, both at home and abroad.

India has also made significant progress in areas like renewable energy and clean water access, and it could use its experiences and expertise to help other countries achieve their own sustainability goals.

Diplomatic Engagement: India has been actively engaging with the international community, strengthening its diplomatic relations and building partnerships with countries around the world. India has also been playing a prominent role in regional organizations such as the South Asian Association for Regional Cooperation (SAARC) and the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC).

As a rising power, India must work more actively to promote peace, stability and security in its region and beyond, through diplomatic engagement, conflict resolution and peacekeeping. The country should also promote its rich cultural heritage and diversity through cultural diplomacy, and serve as a bridge between different civilizations and cultures.

Climate Action: India is taking a leadership role in global efforts to address climate change, particularly through its commitment to the Paris Agreement and its ambitious target of achieving 40% of its energy from renewables by 2030. India is also working to improve energy efficiency, promote sustainable agriculture and forestry, and increase its capacity to adapt to the impacts of climate change.

In coming years, India must enhance its global efforts to tackle the climate crisis by transitioning to a low-carbon economy, investing in renewable energy, and promoting sustainable agriculture and forestry practices.

Digital Transformation: India is leveraging its strength in technology and innovation to drive its digital transformation and become a leader in the digital economy. India has been investing in its digital infrastructure, including initiatives such as the Digital India program, and has developed a vibrant start-up ecosystem.

The country must accelerate leveraging its expertise in technology and innovation to drive the global digital transformation and promote the responsible and ethical use of technology.

Education, Health and Skill Development: India is prioritizing skill development to equip its workforce with the skills needed to participate in the global economy. The government has launched initiatives such as the Skill India program and the Pradhan Mantri Kaushal Vikas Yojana to promote skill development and entrepreneurship. While effectively implementing New Education Policy 2020, India can also share its experiences and best practices in education and skill development with other countries, particularly in the areas of primary education, vocational training and digital literacy.

India, with its large pool of medical professionals and pharmaceutical industry, can play a leading role in addressing global health challenges such as pandemics, non-communicable diseases, and access to essential medicines.

Foreign Investment: India had received foreign investments worth USD 42.5 billion during January- September 2022. It stood at USD 51.3 billion in 2021. The country has registered its highest-ever total FDI inflows of USD 84.84 billion in 2021-22.

India is the preferred investment destination due to series of measures such as liberalisation in the FDI policy, steps to further promote ease of doing business, skilled manpower, presence of natural resources, liberal FDI policies, reducing compliance burden for industry, rollout of the PLI schemes and the PM GatiShakti National Master Plan for integrated infrastructure development.

India’s huge domestic market and prospects of healthy GDP growth are also the strong reasons for optimism on the foreign inflows front for India in 2023 but issues such as delay in enforcement of contracts, cumbersome procedures and high interest rates are still sore points. FDI equity inflows into India, however, contracted by 14 per cent to USD 26.9 billion during the April- September period this fiscal. This is why it is important for India to create a more favourable environment for foreign investment, offering tax incentives, reducing bureaucracy, and improving infrastructure. Then the country may attract the eyes of overseas investors in 2023.

Also, global economic uncertainties due to monetary policy tightening in the US and the fallout of the war in Ukraine with the triple food, fuel and finance crises, along with the ongoing COVID-19 pandemic and climate disruption, are adding stress, particularly in developing countries.