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India proposes ‘Global Development Compact’ to counter Chinese ‘debt trap’ and extremism

Image: Indian Prime Minister Narendra Modi addressing leaders at the third India-hosted Voice of the Global South Summit (Source: X)

India’s Prime Minister Narendra Modi has proposed a “Global Development Compact” centred on human development to enhance trade, technology sharing, and concessional financing among Global South nations.

This proposal, announced at the third India-hosted Voice of the Global South Summit, aims to provide development finance without burdening countries with debt, a concern in light of the growing number of nations falling into the Chinese ‘debt trap’.

Addressing the virtual summit, which saw participation from 123 countries, including 21 heads of state or government, Modi emphasised the importance of a unified approach to confronting global challenges such as food and energy security, terrorism, and extremism.

Modi highlighted that the proposed Compact would be informed by India’s own development journey and designed to support balanced, sustainable growth in partner countries.

The summit, held in line with India’s commitment to the priorities of the Global South, featured discussions on a range of critical issues, including climate change, debt burden, and the need for reform in global governance structures.

External Affairs Minister S. Jaishankar noted that concerns related to sovereignty and strategic autonomy were also raised by several participants, with the ongoing conflict in Gaza being a particular point of focus.

In his closing remarks, PM Modi stressed the need for just and inclusive global governance to address the world’s tensions and conflicts. He called for steps to reduce the gap between the Global North and South, pointing to the upcoming UN Summit of the Future as a potential milestone for these efforts.

Modi announced India’s plans to contribute $3.5 million to fund the new Compact, including $2.5 million for trade promotion activities and $1 million for training in trade policy and negotiation. He also reiterated India’s commitment to supporting the development of Digital Public Infrastructure (DPI) in the Global South, with an initial contribution of $25 million to a Social Impact Fund aimed at this purpose.

This summit follows India’s two previous Voice of the Global South Summits in 2023, which were instrumental in shaping the G20 agenda. Modi underlined the significance of the African Union’s recent admission as a permanent member of the G20, marking the first expansion of the group since its inception in 1999, and a key moment in India’s G20 presidency.

The summit saw participation from leaders across the Global South, including those from Fiji, Bangladesh, Bhutan, Nepal, Sri Lanka, Mauritius, Vietnam, and Chile, among others. Notably, China and Pakistan were not invited to the summit, reflecting the strategic and diplomatic contours of the event.

Modi’s address underscored India’s role as a leading voice for the Global South, advocating for inclusive growth, digital innovation, climate resilience, and equitable global health access. As the world navigates a challenging global environment, Modi’s call for unity and collaboration among developing nations resonates with India’s ongoing efforts to elevate the concerns and aspirations of the Global South on the global stage.

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