Sustainable solutions thrive when businesses and governments cooperate, especially in India and the G20, where fostering inclusive growth is a collective endeavour
As the G20 leaders gather in Delhi, they must prioritize these pressing concerns. Research conducted by the McKinsey Global Institute underscores the urgency of the situation: a staggering 4.7 billion individuals globally, including an astonishing 2.6 billion within the G20 member states, are trapped below the threshold of “economic empowerment.” This stark reality demands immediate attention and action. This line is determined by the cost of living in each respective country and is defined as the ability to afford essentials such as decent housing, healthcare, and education.
Economic growth stands as the keystone of this grand endeavour. A fundamental economic growth rate of 2.5%, coupled with an explosive surge fuelled by amplified productivity and ceaseless innovation, holds the transformative power to bridge nearly half of the monumental chasm that encompasses both empowerment and net-zero investment within the G20. This isn’t just about raising incomes and forging a landscape of high-paying employment opportunities; it’s about equipping our workforce to stride confidently into these roles.
Undoubtedly, the private sector’s participation is pivotal. Without active participation from businesses, bridging the empowerment gap would remain an Everest-like challenge. In India, McKinsey’s estimation asserts that growth and innovation driven by businesses could potentially close an astounding 90% of this gap. Such an accomplishment could propel us significantly closer to realizing a decent standard of living for all by 2030.
Moreover, there’s yet another equally pressing and non-negotiable issue that commands our immediate attention: the crucial need to aggressively combat global warming. The sheer urgency of this moment calls for addressing both challenges in tandem. I am deeply convinced that igniting sustainable and inclusive growth isn’t just about elevating the well-being of billions; it stands as an imperative for safeguarding our planet’s very life-support system.
Promisingly, there is already a surge of momentum to capitalize on. Within the private sector, there exists a remarkable potential for initiatives that are both sustainable, inclusive, and financially lucrative. India is spearheading the electric two-wheeler revolution, with these vehicles accounting for approximately 15% of the country’s two-wheeler sales, a figure poised to potentially skyrocket to 70% by 2030. The astronomical surge in solar energy, expanding 6,000-fold between 2010 and 2022, stands as another beacon of encouragement.
Furthermore, the healthcare sector boasts its own private-sector-driven success stories. A prime example is Apollo Hospitals, which has established an integrated digital network providing accessible, top-notch, and affordable services, all while ensuring profitability and continued growth.
India can also draw inspiration from international success stories. Turkey’s exemplary public-private collaborations in affordable housing and Renault and BMW’s innovative circular production systems, aimed at minimizing waste, energy consumption, and emissions, serve as trailblazing models for emulation. India, in its pursuit of sustainable development, must vigilantly observe ArcelorMittal’s pioneering efforts in decarbonization, particularly its groundbreaking initiative to construct a zero-carbon plant in Spain.
While businesses play a pivotal role, the importance of government cannot be understated. Governments at the local, state, and national levels shape the conditions in which businesses operate and can innovate in delivering basic services. India’s Aadhaar digital identification infrastructure is a shining example, streamlining the delivery of government benefits and fostering financial inclusion. Additionally, the city of Indore in Madhya Pradesh serves as a role model for transforming waste and sanitation management.
In the ever-evolving global landscape, humanity has quietly achieved remarkable milestones in reducing extreme poverty over the last three decades. We’ve witnessed nearly 40% of the global population escaping the clutches of hunger and severe deprivation, a feat that deserves applause. Yet, as we stand on the cusp of a new era, it’s imperative that we raise the bar. How
many people can genuinely meet all their basic needs, from decent housing and healthcare to education? How many lives pendulate on the brink of slipping back into poverty with just one unforeseen emergency? How many possess the resources to determine how they live, work, and spend?
However, this endeavor will be anything but straightforward and will come at a considerable cost. McKinsey’s estimations are truly eye-opening. In order to align with the objectives, set forth in the 2015 Paris Agreement, which entail achieving a staggering 50% reduction in G20 emissions by the close of this decade, an astonishing investment of $35 trillion is imperative, surpassing the existing expenditure levels.
Concurrently, the audacious mission of uplifting every individual above the empowerment threshold within the same timeframe demands a monumental boost in the economic capacity of the most disadvantaged segments, amounting to a staggering $21 trillion. When taken together, these figures account for approximately 6% of the G20’s annual GDP, underlining the magnitude of the challenge at hand.
