Prime Minister Narendra Modi on Saturday proposed the creation of a human-centric "Global Development Compact" for the Global South to facilitate trade, technology sharing and concessional financing based on India's growth journey and in line with the priorities of the developing countries.
The needy countries will not be burdened with debt in the name of development finance, Modi said, announcing the 'Compact' at the third India-hosted virtual Voice of the Global South Summit, amid concerns over many countries falling into the Chinese 'debt trap' under Beijing's Belt and Road Initiative (BRI).
The prime minister also urged the Global South to work unitedly in confronting food and energy security crises and the challenge of terrorism and extremism.
India hosted the third edition of the summit in sync with its commitment and priorities for the Global South or the developing countries.
The 'Global Development Compact' will be inspired by the development priorities set by the countries of the Global South, Modi said.
"I would like to propose a comprehensive "Global Development Compact" on behalf of India. The foundation of this Compact will be based on India's development journey and experiences of development partnership," he said at the closing session of the Summit.
"It will be human-centric and multi-dimensional for development and will promote a multi-sectoral approach. It will not burden the needy countries with debt in the name of development finance," Modi said.
The prime minister said the 'Compact' will help in the balanced and sustainable development of partner countries.
"Under this Compact we will focus on trade for development, capacity building for sustainable growth, technology sharing, project-specific concessional finance and grants.
"To strengthen trade promotion activities, India will start a special fund of $2.5 million. Training will be provided in trade policy and trade negotiation for capacity building," he said.
A fund of $1 million will be provided for this, PM Modi said at the closing session of the summit.
The prime minister also said the solution to various conflicts and tensions around the world lies in inclusive global governance.
"You have also raised concerns related to tensions and conflicts. This is a serious issue for all of us. The solution to these concerns depends on a just and inclusive global governance," Modi said.
"Steps should be taken to reduce the gap between the Global North and the Global South. The Summit of the Future to be held in the UN next month can become an important milestone for all this," he said.
In his address at the opening session of the summit, Modi called on the Global South to work unitedly in dealing with food and energy security crises and challenges of terrorism, amid concerns over the consequences of "uncertainties" across the world.
India will make an initial contribution of $25 million to the 'Social Impact Fund' that aims to develop digital public infrastructure (DPI) in the Global South, the prime minister said.
There has been an "atmosphere of uncertainty" around the world and it has not yet fully come out of the impact of the Covid-19 pandemic, he said, adding new challenges to development are being faced due to wars.
"We are already facing the challenge of climate change. Now there are also concerns about health security, food security, and energy security." "Terrorism, extremism and separatism remain a serious threat to our societies. Technology divide and new economic and social challenges related to technology are also emerging," Modi said.
The prime minister said the global governance and financial institutions formed in the last century have been unable to fight the challenges of this century.
"It is the need of the hour that the countries of the Global South unite, stand together in one voice and become each other's strength. Let us learn from each other's experiences," Modi said.
"Let us share our capabilities. Let us together take our resolutions to fruition. Let us together get recognition for two-thirds of humanity." In the last few years, India has been positioning itself as a leading voice, flagging concerns, challenges and aspirations of the Global South or the developing nations, especially the African continent.
As the G20 president last year, India focused on issues like inclusive growth, digital innovation, climate resilience, and equitable global health access with an aim to benefit the Global South.
PM Modi also elaborated on the importance of cooperation in DPI.
"The contribution of Digital Public Infrastructure in inclusive development is no less than a revolution. The Global DPI Repository, created under our G-20 presidency, was the first ever multilateral consensus on DPI," he said.
"We are happy that agreements have been signed to share the 'India Stack' with 12 partners from the Global South. To accelerate DPI in the Global South, we have created a Social Impact Fund. India will make an initial contribution of USD 25 million to it." Modi also listed various frameworks for cooperation with the Global South. "In the last few years, our cooperation has been boosted in areas of infrastructure, digital and energy connectivity." He also highlighted the priority India attached towards the Global South during its G-20 presidency.
"In 2022, when India assumed the G-20 presidency, we resolved that we would give a new shape to the G-20. The Voice of Global South Summit became a platform where we openly discussed the problems and priorities related to development," he said.
Modi said India prepared the G-20 agenda based on the hopes, aspirations and priorities of the Global South and took forward the grouping with an inclusive and development-focused approach.
"The biggest example of this was the historic moment when the African Union assumed permanent membership in the G-20," he said.
In a significant milestone under India's G20 presidency, the African Union became the new permanent member of the grouping in the first expansion of the influential bloc since its inception in 1999.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!