India’s Vishwa Guru Moment:  Ready to Steer the Davos 2026 Agenda

B SHEKHAR

The write, a senior Business Journalist, is our South India Bureau Chief

In the polished meeting rooms of Davos, India will not simply be another voice pleading for market access, it will arrive as the evidence itself. Across closed-door conversations and plenary panels, ministers and CEOs will point to three unmistakable facts: India is growing faster than almost any other large economy; its exports and manufacturing investment are surging; and policy instruments like the Production-Linked Incentive (PLI) are already pulling global supply chains toward the subcontinent.

Those facts change the tone of the bargaining table: India is no longer asking to be noticed, it is offering to be part of the solution.

Imagine a European car-parts CEO in Davos being introduced to an Indian cluster head who can supply high-precision electronic modules at one-third the lead time offered six months earlier. The CEO asks for assurances about quality, logistics and predictable policy.

The conversation that follows, private, practical and quickly escalated to letters of intent, exemplifies how Davos works now. It is not treaties; it is deal-architecture: agreements on risk-sharing, timelines for capacity expansion, and explicit government supports that unlock factory expansion the next quarter.

Those conversations are grounded in data. India recorded record exports of $824.9 billion in FY 2024–25, and officials and industry groups are projecting a leap past $1 trillion in FY 2025–26 as global buyers diversify away from China. Meanwhile, manufacturing-focused foreign direct investment grew meaningfully: manufacturing FDI rose to $19.04 billion in FY 2024–25, an 18 percent jump year-on-year, a signal that global capital is beginning to re-route. At the same time, PLI schemes have approved hundreds of applications and attracted more than $20 billion in planned investments, with production surging in targeted sectors. Those numbers give India not just credibility but leverage.

What India can and should do at Davos and what others will likely ask it to do, breaks into three practical buckets: (1) supply-chain diplomacy, (2) finance and investment architecture and (3) rule-setting for trade and technology. Each can be anchored with concrete policy asks that India can promote or accept as part of multilateral packages.

1. Supply-chain diplomacy: from “China+1” to “Coalitions for Critical Goods”
   India proposes to form a Davos-initiated “Coalition for Critical Goods”, a public-private compact to coordinate capacity expansions in electronics, active pharmaceutical ingredients (APIs), solar components and EV parts. The coalition would map global shortfalls, set short-term capacity targets (e.g., add X number of Giga Watts of solar module assembly, or Y number of million mobile-phone units in India within 24 months), and create an expedited approvals window for cross-border manufacturing partnerships.

Why this works: buyers want predictability, not rhetoric. India can nominally offer land-lease guarantees, a harmonized fast-track for customs and testing for coalition projects, and the PLI playbook as a template to co-finance capacity. In return, EU and U.S. firms could commit to multi-year offtake agreements or joint-venture capital, turning Davos from a stage for announcements into a pipeline for executable orders.

2. Finance and investment: risk-sharing to speed factory-line reality
   India wants a multilateral “Resilience Investment Facility”, seeded by development banks, sovereign investors and corporate partners, to underwrite the early-stage capex risk of redeploying supply chains. The facility’s instruments would include convertible concessional loans, partial-risk guarantees and blended-finance equity to bring down the cost of capital for greenfield factories in India and partner emerging markets.
3. Trade rules and digital corridors: predictable rules to lock in trade gains
   India proposes a short, pragmatic set of rules for “digital-enabled trade corridors”, minimal harmonized standards for electronic documentation, rules of origin for diversified supply chains, and a dispute-avoidance mechanism for emergency export-curbs. India could use Davos to rally a coalition of export-oriented democracies to pilot the corridor model for semiconductors, specialty chemicals and medical devices.

Why this will be persuasive: companies flee uncertainty. If governments at Davos agree to narrow, targeted commitments that prevent sudden export bans or punish arbitrary tariffs for critical categories, firms will accelerate relocation plans. India can offer itself as the operational hub for pilot corridors, ports, bonded logistics parks and customs modernisation are already in motion, making the pledge credible rather than aspirational.

              4. Skills, standards and green industrialisation: the soft infrastructure
India commits a “Skills & Standards Pact” to finance large-scale workforce training tied to new factories and to adopt interoperable quality standards (especially in electronics and pharma). Donors and multinationals can pledge training funds and technology transfer; India can commit to accelerated accreditation and rolling labour-market supports.

Why this matters: moving production is one thing; ensuring local workforces and quality systems scale fast is another. If India and partners align on standards and skilling at Davos, the time from investment announcement to production can shrink materially.

The payoff, if Davos goes beyond optics

If India uses Davos to convert credibility into coalition commitments, targeted capacity goals, a risk-sharing finance vehicle, pilot trade corridors and joint-skills pacts, the result would be measurable: faster diversification of supply chains, more predictable trade flows and higher-quality inward investment.

For countries anxious about growth, it would mean alternative manufacturing capacity brought online at scale; for firms, it would mean reduced concentration risk; for India, it would mean jobs, technology transfer and the deeper integration into global value chains the statistics already promise.

India a Key Player in the New Global Order

In a world increasingly wary of concentrated supply risks, India’s rise offers a meaningful counterbalance. Its strong growth, increasingly capable manufacturing base, demographic advantage and proactive industrial policy make it a credible alternative to China in many sectors.

At high-stakes global meetings, whether the WEF in Davos or other multilateral forums, India’s voice will only become more important. Not just as a growth engine, but as a strategic partner: a place where companies can build, leaders can invest and economies can reconfigure. In short, India is not just growing, it is stepping into a role that could reshape the next phase of globalization.

Conclusion
At Davos 2026, India is poised not just to participate in the global economic conversation but to set its tempo. With the numbers, momentum, and credibility now firmly on its side, India can move from being an example of emerging-market promise to an architect of global economic priorities. By advancing a concrete, collaborative playbook for supply-chain resilience, it can anchor the agenda that others will follow. The moment is no longer about showcasing India’s rise, it is about India shaping the terms of the global economic debate.

India’s Geopolitical & Economic Role

1. A Rare Growth Engine in a Slowing World

At a time when much of the world is facing sluggish growth, India stands out as one of the fastest-growing large economies. The IMF has maintained India’s GDP forecast at 7 percent for FY 2024–25, underscoring strong domestic momentum.
Some analysts, such as S&P Global, are even more bullish, projecting India’s growth could reach 7 percent by 2026, while China’s slows to around 4.6 percent.

This is not just a statistic it reflects a deeper shift in global economic gravity. As major economies struggle with debt, inflation and geopolitical risk, India’s trajectory offers both hope and concrete opportunity.

2. Manufacturing Pivot: India as “China +1”

One of the most significant stories in recent years is the realignment of global supply chains. As geopolitical and trade risks mount, global companies are increasingly embracing a “China +1” strategy and India is emerging as a key beneficiary.

Some concrete drivers:

• Demographics & Workforce: India’s young, skilled population is a huge plus. According to Manufacturing Today India, its workforce and talent pool make it a compelling alternative for firms looking for both scale and cost-efficiency.
• Policy Push: The Indian government’s Production Linked Incentive (PLI) schemes have played a major role. These incentives have targeted high-growth sectors like electronics, pharmaceuticals, and automobiles, helping global firms set up locally.
• FDI Surge in Manufacturing: In FY 2024–25, India’s manufacturing FDI hit US$ 19.04 billion, up 18 percent from the previous year.
• Logistics & Infrastructure: India is also investing heavily in infrastructure (roads, ports, rail) to make its supply chains more resilient. Improved logistics help make manufactured goods globally competitive.

3. Why Global Leaders at Davos Should Care About India

In the context of global geopolitical and economic uncertainty, India’s rise provides several strategic “hedges” and opportunities for world leaders:

• Economic Resilience: For nations grappling with fragile growth, India offers a reliable economic partner. Its domestic demand is robust and its growth trajectory gives hope of being a durable engine.
• Supply-Chain Diversification: As companies and countries rethink over-reliance on China, India provides a viable, scalable alternative for many sectors.
• Investment Opportunity: India is not just a manufacturing base it is becoming a tech destination too. Investors can tap into value-added manufacturing (electronics, EVs, green energy) and deep consumer markets.
• Geopolitical Rebalancing: With its strategic location, rising clout, and commitment to multilateralism, India can play a crucial role in global governance, trade agreements, and infrastructure initiatives.

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