Introduction

The World Economic Forum (WEF) Annual Meeting at Davos, Switzerland, serves as a global deliberative platform, scrutinizing contemporary economic, technological, and policy issues. In January 2025, the WEF convened under the "Collaboration for the Intelligent Age" theme, bringing together global leaders, policymakers, and industry experts. For India, participation at Davos corresponds to constitutional and developmental priorities such as inclusive growth, employment generation, climate action, and digital transformation—all enshrined in Article 19 (trade and business), Article 21 (right to life), and Article 39 (social justice and livelihood).


Background & Context

Davos summits have historically set the tone for international economic governance, often reflecting concerns over globalization, trade reforms, and sustainable development. India's engagement with the WEF dates back several decades, evolving from modest economic discussions to substantive debates over leadership in climate action, digital transformation, and global supply chains. Recent years have seen India's ascendance as a voice for the Global South, energizing South-South cooperation and advocating greater representation in multilateral institutions.


Current Scenario

The 2025 WEF meeting underscored five major themes for India:

  1. Sustaining Economic Growth: India was lauded for maintaining a 6.5% growth forecast amid global uncertainties, with the IMF acknowledging the potential for further gains through lower tariffs and greater supply chain integration.

  2. Digital and Tech Innovation: Key advances in AI, fintech, healthtech, and semiconductor ecosystems were showcased as drivers for the next phase of India's economic growth.

  3. Investing in Human Capital: Workshops focused on skilling, digital inclusion, and workforce modernization, with particular impetus for women and youth.

  4. Climate Action and Sustainability: India’s leadership in renewables, the International Solar Alliance, and progressive green finance mechanisms were highlighted.

  5. Rebuilding Trust in Globalization: Promoting global partnerships while bridging divides, India emphasized inclusive policymaking and strengthening ties, as seen in new EU-India strategic announcements.

India’s participation was marked by successful bilateral engagements, most notably with the European Commission, and numerous state-led investment and policy showcases, with states like Andhra Pradesh, Telangana, Maharashtra, Kerala, Uttar Pradesh, and Tamil Nadu presenting local agendas on AI, blue economy, renewable energy, and agro-industrial reforms.

Government Policies & Legal Provisions

  • Policies driving dialogue at Davos included the National Digital Health Mission, Skill India Mission, and ongoing supply chain reforms.

  • Environmental and climate sections referenced India's commitments under the Paris Agreement and International Solar Alliance.

  • India’s digital economy push was anchored in schemes such as Digital India, and supported by data protection frameworks (Personal Data Protection Act draft 2023).

  • Investment dialogues stressed key reforms under the Atmanirbhar Bharat initiative and associated regulatory policies.

Challenges / Issues

  1. Global Economic Slowdown: Ongoing fragility due to trade tensions and uneven recovery from the pandemic.

  2. Job Creation and Employability: The gap between economic growth and quality employment, with continued skill mismatch issues.

  3. Technology Adaptation: Pace of AI adoption and digital transformation uneven across regions and sectors.

  4. Climate Adaptation Risks: Financing and implementation gaps in renewable energy and sustainable infrastructure.

  5. Supply Chain Resilience: Challenges in diversifying and securing global supply chains amid geopolitical uncertainties and protectionist trends.

  6. Trust Deficit: Fragmentation in global cooperation, necessitating renewed consensus-building.

Way Forward

  1. Deepen Global Economic Integration: Lower tariffs, foster innovation through public-private partnerships, and expand supply chain integration.

  2. Accelerate Skilling and Education: Invest in workforce modernization for digital sectors, focusing on inclusive opportunities for women and marginalized groups.

  3. Innovate Sustainable Financing: Advance climate finance and green bond markets for renewable expansion.

  4. Foster Collaborative Governance: Build digital trust and interoperability standards, support regional and federal leadership in tech and sustainability.

  5. Leverage Technology for Social Inclusion: Scale up digital tools for health, education, and governance, addressing rural and informal sector needs.

Significance for Exams

For Prelims:

  • WEF Davos 2025 (“Collaboration for the Intelligent Age” theme)

  • 6.5% IMF growth forecast for India (2025)

  • International Solar Alliance and green finance initiatives

  • Major states: Andhra Pradesh, Telangana, Maharashtra, Kerala, Tamil Nadu, Uttar Pradesh

  • Paris Agreement commitments

  • Atmanirbhar Bharat reforms

  • Personal Data Protection Act (draft status, 2023)

  • National Digital Health Mission, Digital India Mission

For Mains:

  • Impact of global economic slowdown on India’s growth prospects

  • Case study: India’s supply chain policy reforms and their resilience effects

  • Analysis: Women’s participation and digital inclusion in workforce modernization

  • Policy debate: Challenges in sustainable infrastructure and climate finance

  • Example: India’s leadership in International Solar Alliance and EU-India strategic engagement

For Interview:

  • India’s thought leadership at WEF projects its growing global influence and strategic priorities.

  • Digital transformation and renewable energy investments drive India’s current and future growth narrative.

  • Effective global partnerships and policy coherence are crucial to address employment and climate challenges.

In Short

Davos 2025 amplified India’s role as a driver of growth, digital innovation, and sustainable development. Translating global outcomes to domestic progress requires persistent reforms, equity in opportunity, and multi-level stakeholder engagement.