Shaktikanta Das flags eastward shift in global economy, urges Global South to seize opportunities
Distilled Policy Brief
- Shaktikanta Das noted that the global economic gravity is shifting eastward, providing new opportunities for developing nations in the Global South to increase their footprint.
- He emphasized five critical areas for emerging economies—food security, trade diversification, energy transition, macroeconomic stability, and job creation—to counter global shocks and rising protectionism.
- World Bank estimates cited by Das indicate that fiscal deficits across emerging market and developing economies are expected to widen in 2026, driven by energy shocks and import dependencies.
🎯 Prelims High-Yield Examination Points
According to World Bank estimates cited by policy officials, fiscal deficits across emerging market and developing economies are projected to widen in 2026, heavily impacting energy-importing nations.
⚖️ Mains Analytical & Syllabus Linkages
Analyze the strategic imperatives for the Global South in navigating an eastward-shifting global economic order while managing energy vulnerabilities, trade protectionism, and demographic dividends.
🎯 UPSC Prelims Practice Drill
With reference to the recent observations on the shifting global economic order and the Global South, consider the following statements: 1. The global economic gravity is shifting eastward, creating opportunities for developing nations to increase their economic footprint. 2. According to World Bank estimates cited, fiscal deficits across emerging market and developing economies are expected to widen in 2026 due to energy shocks and import dependencies. 3. The five critical areas emphasized for emerging economies to counter global shocks include food security, trade diversification, energy transition, macroeconomic stability, and job creation. Which of the statements given above are correct?
- [A] 1 and 2 only
- [B] 2 and 3 only
- [C] 1 and 3 only
- [D] 1, 2 and 3
▶ Reveal Official Answer & Analytical Explanation
All three statements are correct and directly derived from the speech by Shaktikanta Das regarding the eastward shift of the global economy, the World Bank estimates on fiscal deficits for 2026 driven by energy shocks, and the five critical areas identified for emerging economies to counter global shocks and rising protectionism.
🏛️ Historical Twin PYQ Anchor (2021)
Consider the following statements regarding the "National Clean Air Programme (NCAP)": 1. It is implemented by the Ministry of Environment, Forest and Climate Change. 2. Central Pollution Control Board acts as the sole regulatory executive body.