[News Terms] India Aiming to Be Leader of the Third World, Advocates 'Global South'

Countering the 'Global North' Representing Developed Countries
Strengthening International Status as G20 Presidency Holder

[Asia Economy Reporter Hyunwoo Lee] As India, the chair country of the Group of Twenty (G20) in 2023, hosted a large-scale video conference inviting leaders from over 120 developing countries worldwide, attention is focusing on the background of this event. It is being evaluated as a moment where India demonstrated its cohesion as the leader of Third World countries.

In particular, following the Ukraine war, the voices of developing countries commonly referred to as the 'Global South' in the international community have grown louder, drawing great interest from major powers in India's movements. Based on its rapidly expanding economic power, India is expected to simultaneously aim for an elevation of its international status and a check on China, intensifying the power struggle with China within Asia.

Indian Prime Minister Narendra Modi is delivering a keynote speech at the G20 summit held in Bali, Indonesia, last November. India, the chair country of the 2023 G20, plans to host the G20 summit in New Delhi this September. Bali=Photo by Reuters and Yonhap News

The 'Global South' Countering the Hegemonic Struggles of Developed Countries

According to Bloomberg News on the 12th (local time), Indian Prime Minister Modi invited leaders from over 120 developing countries worldwide to a video conference named 'Voices of the Global South Leaders.' In his opening speech, Prime Minister Modi emphasized, "People of Global South countries should no longer be excluded from the fruits of development," and stated, "The global growth of the 21st century will come from the Global South."

The term 'Global South,' emphasized by Prime Minister Modi, generally refers to underdeveloped countries mainly located in the Southern Hemisphere, commonly expressed as 'Third World' or 'developing countries' in the international community. This includes India, Southeast Asia, the Middle East, Africa, and Latin American countries. In contrast, the remaining developed countries are called the 'Global North.'

The characteristic of Global South countries is that they are newly independent nations that experienced long-term colonial rule by Western powers and maintain a neutral stance without siding with any party in the hegemonic competition among major powers. These countries largely abstained from voting on the UN resolution condemning Russia immediately after the Ukraine war. They often practice equidistant diplomacy between the United States and Western countries and China and Russia, frequently adjusting their diplomatic lines according to their national interests.

In particular, this conference was held with the purpose of discussing major issues among Global South countries such as diplomacy, finance, energy, trade, health, education, and environment, and seeking joint responses to crises triggered by hegemonic countries, including climate change and the Ukraine war. It is interpreted that the growing sense of crisis among these countries, which suffered significant damage due to fluctuations in the international grain and oil markets and sharp rises in fertilizer and key raw material prices after the Ukraine war, made it unacceptable to remain passive any longer.

The term "Global South," referring to the Third World or developing countries, is marked in red, while the "Global North," symbolizing developed countries, is shown in blue.
[Image source=Getty Images Bank]

India Aiming for Both a Check on China and an Elevation of International Status

With the G20 approaching, India, which united the Global South countries, is expected to see a significant rise in its international status simply by hosting this conference. India is not only the chair country of the G20 this year but also simultaneously serves as the chair country of the Shanghai Cooperation Organization (SCO), led by China and Russia, enhancing its diplomatic capabilities.

Traditionally emphasizing a neutral diplomatic line, India is strengthening cooperation with both the United States and China and Russia simultaneously. While chairing the SCO, India is also a member of the Quad, a military alliance aimed at checking China alongside the United States, and in May last year, it declared participation in the U.S.-led Indo-Pacific Economic Framework (IPEF).

The foundation of this neutral diplomatic policy, which could risk alienating all major powers, is evaluated to be India's strong economic and military power. India has a massive domestic market centered on its 1.4 billion population and is particularly attracting attention as an alternative market amid difficulties faced by Chinese manufacturing due to COVID-19 lockdown measures and the U.S. supply chain relocation issues.

India's foreign direct investment (FDI) in the 2021-2022 fiscal year surged by 76% year-on-year to $21.34 billion (approximately 26.59 trillion KRW). In a report released in November last year, the global financial information agency S&P Global forecasted, "From 2021 to 2030, India's economy will grow at an average annual rate of 6.3%, surpassing Japan and Germany to become the world's third-largest economy."