Asia's Economic Gravity Pulls India Eastward: Insights from Economic Conclave

Michael Debabrata Patra, Chairman of the Board of Governors at the Institute of Economic Growth and former Deputy Governor of the Reserve Bank of India, has urged India to focus on Asia, describing it as the new 'centre of gravity' for world growth. Speaking to ANI on the sidelines of the Kautilya Economic Conclave in New Delhi, Patra remarked that 'nearly two-thirds of world growth is emanating from Asia,' suggesting it would be prudent for India to look east.

Patra also cautioned against the current geopolitical and economic turbulence, citing factors such as geopolitical conflict, fragmented trade and industrial policies, and financial instability. He argued that countries like India are experiencing adverse effects as 'bystander nations' amid these dynamic global policy changes.

Highlighting the changes in the global order, Patra pointed out a shift away from established rule-based frameworks like those of the IMF and World Bank, leading to a fragmented trading and financial environment. Regarding India's economic outlook, he noted that India has achieved over 8% growth between 2021 and 2025, with a brief cyclical dip in 2024-25. Nevertheless, a first-quarter figure of 7.8% signals a return to an upward trend.

During the event, Jean-Claude Trichet, Governor of the Bank of France and former President of the European Central Bank, expressed optimism about India's economic growth prospects. He emphasized the critical nature of rule-based trade and noted India's ambitious plans for further growth, lauding the quality and potential of its people.