Davos 2024: Moving towards G0 and T3 world order, says BCG's Neeraj Aggarwal

BCG's Neeraj Aggarwal said that it is possible for India’s gross domestic product (GDP) to reach $7-8 trillion by 2030 and $5 trillion by 2027.

The world is moving towards “G0” and “T3” as countries are forming many-to-many relationships, Neeraj Aggarwal, chairman Asia Pacific, BCG, said in an interview with Moneycontrol on the sidelines of the World Economic Forum (WEF).

He said “G0” is a new form of globalisation in the context of economic groupings such as G7 and G20. And "G0" does not amount to de-globalisation, he said. He also coined the term “T3”, where US, India, and China will play a disproportionate and defining role in shaping the technologies of tomorrow.

At a time when geopolitics issues are becoming the focus, BCG’s Aggarwal said, "I think we're entering a world where people are really crafting relationships. That was not the case some time ago, which I definitely believe is something quite profound."

Speaking about the impact of artificial intelligence (AI), Aggarwal said this is a big change akin to the Industrial Revolution. The change is a once-in-a-multi-decade kind of a change.

"So this is not an incremental change, this is not blockchain. This is not something else, this is a big change," Aggarwal said.

Aggarwal said AI and generative AI could possibly be used to reduce language barrier, reshaping some of the functions like customer service and marketing, among other others.

On the healthcare front, he said that AI could help in discovering cures for diseases, such as cancer. Additionally, he highlighted that diabetes, which is highly prevalent in India, could be better managed with the help of AI. “Healthcare by itself, which is an important problem, I think Gen AI will help deliver better,” Aggarwal said.

He added that it is possible for India’s gross domestic product (GDP) to reach $7-8 trillion by 2030 and $5 trillion by 2027. To achieve that milestone, India has been improving its physical and digital infrastructure.

Aggarwal also expressed his appreciation for India's competitive federalism, citing the pavilions set up by various states in Davos.

“You see a lot more confidence in people, small town kids can imagine (and) dream big, and capital will follow to support that,” Aggarwal said.

He added that BCG's consulting team, focused on customer insight, has noticed a spike in the number of affluent families. Aggarwal pointed out that this phenomenon sets in motion a virtuous cycle of its own.