The Reserve Bank of India’s Governor, Shaktikanta Das, stressed the importance of formulating a robust strategy for global cooperation and coordination to address the numerous challenges the global economy is currently facing. Addressing the South East Asian Central Banks (SEACEN) Governors Conference on Thursday, Das said, “Multilateralism must be re-energised. In this regard, agreements on a “critical minerals corridor” and a “food corridor” for safeguarding food security are necessary. Such arrangements have to be fair and equitable.”
He also highlighted the necessity of fostering collaboration in areas of shared interest and immediate concerns, like climate change, where individual countries cannot implement effective strategies alone. Ensuring a seamless and organised transition to green initiatives is crucial to prevent disruptions to economic activities and preserve growth potential.
Although the investment requirements for a seamless green transition are substantial, the actual financial allocations to green projects are disproportionately skewed towards advanced economies. Consequently, there’s a pressing need to augment green capital inflows to Emerging Market Economies (EMEs). However, we must also consider the potential financial stability ramifications of this green transition, he said.
Das emphasised that enhancing infrastructure remains pivotal for long-term growth. While investing in hard infrastructure such as roads, ports, airports, electricity, and water is crucial, there must be an equal focus on developing soft infrastructure, including education, healthcare, legal frameworks, financial systems, and institutional setups.
The RBI Governor noted that India’s experience has demonstrated the effective utilisation of Digital Public Infrastructure (DPI) to drive financial inclusion and enhance productivity by reducing costs. He highlighted the success of the Unified Payments Interface (UPI) and its potential to serve as a global benchmark for cross-border payments.
He further stated that emerging technologies such as artificial intelligence (AI) and machine learning (ML) have the potential to significantly enhance the efficiency and productivity of businesses. However, it is crucial to implement the necessary safeguards to prevent technology misuse.
He highlighted the importance of global financial market regulators remaining vigilant against the potential misuse of AI and ML for financial fraudulence.
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