The President of the World Bank, Ajay Banga, encouraged India to take advantage of the ‘China plus one’ approach adopted by global companies.
As companies seek to diversify their supply chains by establishing factories outside of China, India has a unique opportunity to attract investment and boost its economic growth.
The call comes after investment declarations by US companies, including Micron Technology, choosing India as a strategic location. This trend aligns with the United States’ efforts to find an alternative to China in the Asian market amid escalating tensions between the two nations.
Ajay Banga, who took over as the World Bank chief last month, emphasized that India has limited three-to-five years to seize this opportunity.
During his recent state visit to the US, Indian Prime Minister Narendra Modi witnessed a surge in investment commitments from American companies to India, further underlining the potential for economic growth.
Apart from advocating India’s adoption of the ‘China plus one’ strategy, Banga also urged private capital investments to support global initiatives for renewable energy funding.
The World Bank estimates that developing nations will require $1 trillion by 2030 to facilitate the transition towards green energy and achieve net-zero targets.
To achieve this, Banga stressed the need for diverse forms of concessional capital, multilateral bank capital, government capital, and philanthropic capital to enable blended financing.