Underlining that disruptions in fuel, fertiliser and food supply chains caused by the war in West Asia will impact the Global South for “a considerable period”, Wednesday told G7 leaders, including , that the “most vulnerable countries” should not be left to bear the burden of these crises alone, and global financial organisations should develop support systems for affected nations.
The war in West Asia has adversely impacted the economy of India and other developing countries in Asia, Africa and Latin America as supply of LPG, LNG, diesel, petrol and fertilisers have been disrupted by the near-closure of the Strait of Hormuz. This has led to rise in fuel prices with cascading effects on the economy, causing hardships.
Addressing the outreach session on ‘Reviving a Balanced, Shared and Sustainable Economic Growth for All’ at the G7 summit in Evian-les-Bains in eastern France, Modi said, “The disruptions in fuel, fertiliser and food supply chains caused by the crisis in West Asia will continue to impact the Global South for a considerable period. If we genuinely seek to strengthen international solidarity, the most vulnerable countries should not be left to bear the burden of these crises alone.”
“Our international financial institutions should develop support mechanisms that help developing countries absorb these shocks and maintain their economic resilience,” he said.
Also attending the summit are the World Bank, IMF, OECD and African Development Bank.
Modi, who was articulating the concerns of the Global South, had said a day earlier that this bloc had “high expectations of the international community” and “what they seek is not mere support, but partnership”.
On Wednesday, he acknowledged that the French G7 Presidency had given importance to this topic. Speaking for the developing countries, he said, “The reality today is when it comes to growth, the question should not be about GDP or trade numbers. The real question is: Growth for whom, with whom and in what direction?”
He said India’s experience demonstrated that shared development could help transform aspirations into reality, and the country’s growth story was one of inclusion, scale and democratic empowerment.
“It is inspired by ‘Sabka Saath, Sabka Vikas, Sabka Vishwas, Sabka Prayas’ (Together with all, development for all, trust of all, efforts by all). And, it has been reflected on countless occasions such as India’s G20 Presidency, the launch of the India-Middle East-Europe Economic Corridor (IMEC) and more.”
India launched the IMEC in September 2023, a month before the start of the war in Gaza following the October 7 attacks on Israel by Hamas.
“Like the vision of IMEC, can we work on connectivity projects with countries in Africa, Latin America and the Pacific Islands? 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),” Modi said as he put forward a new proposal.
The summit is also being attended by G7 partner countries Brazil, Egypt, South Korea and Kenya. Ukraine, Qatar and the UAE have also been invited.
Reflecting on the situation in the developed countries, he said, “Today, many societies are becoming ageing societies while India and other countries of the Global South have abundance of young talent, entrepreneurship and skills. To harness this natural complementarity calls for the creation of a Global Skills Partnership, where we can work together on skill mapping and promote trusted skilled mobility.”
This is part of India’s own mobility pacts signed with many developed countries, where Indian skilled and semi-skilled professionals can travel to work through legal migration channels.
