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As the world grapples with climate change, economic inequality, digital upgrades and shifting geopolitical landscapes, the frameworks that have long shaped international development are being reconsidered. The traditional Global North-South divide often oversimplifies the complexities of today’s interconnected world, wherein countries like India are challenging these outdated notions by stepping into new roles that blend national development goals with global leadership. India’s journey from a post-colonial nation to a proactive global player highlights the need for inclusive, dynamic approaches to development governance, engaging both emerging economies and established powers.
Championing the South, connecting the world: India’s cooperative strategy
The old labels of Global North and South do not fully capture the complexities of modern international relationships. The rise of South-South cooperation has highlighted the importance of partnerships built on mutual respect, shared experiences, and collaborative problem-solving. India has been instrumental in pushing this shift, not just as a participant but as a leader that bridges the gap between developing nations and established powers. Such cooperation focuses on countries with similar development challenges, such as food insecurity, poverty, and inequality—issues that often differ from those wealthier nations face.
The rise of South-South cooperation has highlighted the importance of partnerships built on mutual respect, shared experiences, and collaborative problem-solving.
The global economic system, dominated by corporations based in the Global North, has historically exploited resources and labour in the South, exacerbating these inequalities. South-South partnerships aim to reverse this trend, fostering beneficial alliances for all parties involved. Through initiatives like the United Nations Office for South-South Cooperation (UNOSSC), India supports the inclusion of Least-Developed Countries (LDCs) and Small-Island Developing States (SIDs) in global governance. These partnerships open new avenues for development finance, including concessional loans and untied grants, that help reshape how development goals are pursued and achieved.
However, the global development landscape isn’t just about South-South cooperation. India also plays a vital role in bridging North-South relations, advocating for fair and equitable partnerships. The priorities of major financial institutions like the International Monetary Fund (IMF) and the World Bank are often dictated by Global North interests, which don’t always align with the needs of recipient countries. India’s voice in these forums helps push for development that genuinely reflects the aspirations of the Global South. India’s involvement in forums like the United Nations, the World Trade Organization, and the G77 demonstrates its commitment to fostering inclusive global development. While India historically championed the rights of developing nations as a founding member of the Non-Aligned Movement (NAM), its recent strategies balance traditional alliances with new, forward-thinking partnerships. For example, India’s leadership in the International Solar Alliance (ISA)—a coalition of over 120 countries promoting renewable energy—underscores its commitment to sustainable development on a global scale.
India’s G20 presidency in 2023 was marked by significant strides towards advancing global development, reflecting its commitment to inclusive and sustainable growth. Under the theme “One Earth, One Family, One Future” (Vasudhaiva Kutumbakam), India prioritised climate resilience, digital transformation, and equitable access to global resources. A landmark achievement was the successful inclusion of the African Union (AU) as a permanent member of the G20. It was a move that highlighted India’s dedication to amplifying the voice of the Global South in global governance. Additionally, India championed initiatives focused on digital public infrastructure, promoting financial inclusion through technology and advocating for reforms in multilateral development banks to better support developing nations. By steering the G20 towards a more inclusive development agenda, India reinforced its role as a bridge between advanced economies and emerging markets, fostering collaborative solutions to shared global challenges.
Under the theme “One Earth, One Family, One Future” (Vasudhaiva Kutumbakam), India prioritised climate resilience, digital transformation, and equitable access to global resources.
Moreover, by aiding the establishment of the New Development Bank with BRICS countries and contributing to the Asian Infrastructure Investment Bank (AIIB), India advocates for more equitable, innovative development financing models. However, India’s role within BRICS is nuanced and strategic. While it collaborates with Brazil, Russia, China, and South Africa on common development goals, India remains cautious of China’s growing influence within the group. Moreover, India carefully navigates the anti-Western sentiments often expressed by Russia and China within the BRICS framework. Rather than aligning with these perspectives, India steers the group’s focus towards global development objectives that transcend ideological divides, emphasising inclusivity and equitable growth.
Growth and growing pains: Complexities in India’s global ambitions
While India’s influence in global development governance is growing, several challenges could hinder its continued leadership. Economically, India is one of the world’s largest economies in terms of Gross Domestic Product (GDP), but its per capita income remains much lower than that of advanced economies. As of 2024, India's nominal GDP per capita is estimated at US$ 2,698, placing it 144th out of 194 economies globally. This figure is significantly lower than the global average, highlighting the disparity between India's overall economic size and the individual income of its citizens. In purchasing power parity (PPP), India's GDP per capita is higher, reflecting the lower cost of living. However, it remains below the global average, underscoring the need for sustained economic growth to improve individual prosperity for an inclusive development pathway. Although millions have been lifted out of poverty, addressing structural challenges like infrastructure deficits, regulatory hurdles, and workforce development is essential for India to maintain its upward developmental trajectory.
India is one of the world’s largest economies in terms of Gross Domestic Product (GDP), but its per capita income remains much lower than that of advanced economies.
India also faces domestic social and political issues, including rising income inequality, environmental degradation, and regional disparities. Balancing these internal priorities with its global commitments will significantly test India’s governance and strategic vision. Moreover, the evolving political landscape in key partner countries, particularly the United States, adds another layer of complexity. Under the new Trump administration, shifts in US foreign policy on trade, climate commitments, and multilateral cooperation could affect India’s strategic calculations with the world. While the US-India partnership has grown, tensions over trade disputes and geopolitical priorities could strain this relationship.
Finally, India’s evolving role in global development governance signals a shift from traditional frameworks to more inclusive, interconnected approaches. By avoiding the Global North-South binary in practice and engaging in both South-South and North-South cooperation, India demonstrates how emerging economies can shape a fairer, effective and more sustainable global system. Yet, maintaining this leadership will require India to navigate domestic and international challenges with agility and foresight.
(Disclaimer: GPT-4o was used to assist in summarising information from the author's previous policy brief, “Bridging the SDGs Financing Gap: A Ten-Point Agenda for the G20,” for inclusion in the third and fourth paragraphs of this article.)
Soumya Bhowmick is a Fellow and Lead, World Economies and Sustainability, at the Centre for New Economic Diplomacy (CNED) at the Observer Research Foundation (ORF).
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