Shaktikanta Das warns Global South to harness eastward economic shift

At a recent RIS forum, Shaktikanta Das described a shift of economic gravity toward the east and urged countries of the Global South to develop concrete strategies for food security, diversified trade, energy transition, macro-stability and employment. He noted that the ongoing West Asian conflict has pushed up energy prices and revived inflationary pressures, threatening global growth and consumer purchasing power. Das referenced World Bank estimates that fiscal deficits in emerging and developing economies will expand in 2026, particularly for nations reliant on energy imports, before easing only modestly.

He called for fiscal and structural reforms, emphasizing the challenge of maintaining stability while shielding consumers from rising commodity costs. With 1.2 billion youths expected to enter the labor market over the next decade, Das highlighted the urgency of investment, especially in rapidly urbanising areas that drive job creation. Despite multiple shocks, he said the Global South’s contribution to global growth has risen, presenting an opportunity for nations that pursue development reforms.