Jeffrey Sachs, University Professor at Columbia University, has praised the Adani Group for its contribution to India's economic transformation, describing the conglomerate as one of the major drivers of change in the country. Speaking at the World Symposium in Varanasi, Sachs highlighted the group's role in infrastructure development while drawing a distinction between family-owned businesses and large American corporations.
"Adani Group is one of the great progenitors of change in India. It is playing a huge role in infrastructure development," Sachs said, acknowledging the conglomerate's contribution to the country's growth. However, he also contrasted the family-led business model associated with the Adani Group with that of prominent American companies such as SpaceX and Amazon.
"Consider American companies like SpaceX, Amazon. These businesses do not represent family values. They do not carry names and responsibilities of families that Priti Adani referred to," he said.
Sachs argued that American corporations largely operate with a focus on maximising shareholder value, whereas family-led businesses carry a different set of responsibilities and legacy considerations.
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Asia's Return To The Centre Of The Global Economy
Beyond his comments on the Adani Group, Sachs used his address to explain how the global economic balance of power has shifted over the past three centuries, with Asia regaining its position as a major centre of economic activity. Referring to historical estimates of global economic output, he said China and India each accounted for around 20% of global production in 1700, while Europe contributed approximately 24%. The United States, which did not yet exist as an independent country, accounted for just 0.1%.
However, the 19th century brought a dramatic shift, with European imperialism significantly weakening the economic position of India and China. Sachs said India's economic decline during this period was closely linked to British colonial rule, while China suffered from the Opium Wars, civil conflict and Japanese invasions. By 1900, Europe's share of global output had risen to nearly 40%, while India and China together accounted for less than 20%, despite representing a substantial portion of the world's population.
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The situation worsened by 1950, when the US and Europe together accounted for 56% of global output, while India and China contributed less than 10%. Sachs described this period as the nadir of Asia's economic influence.
India Could Become The World's Largest Economy By 2100
According to Sachs, the economic recovery of India and China following independence marked the beginning of a long-term shift in global economic power. He described the current phase as an age of convergence, in which Asia is returning to the centre of the global economy after centuries of Western dominance.
Citing International Monetary Fund data, Sachs said Asia now accounts for around 48% of global economic output, compared with 31.8% for the US, Canada and Europe combined. He expects this trend to continue, with Asia potentially accounting for around half of global economic output by 2050.
Looking further ahead, Sachs projected that India could become the world's largest economy by 2100, with its population potentially reaching twice that of China. He also emphasised that the emerging global order would be multipolar, with no single country or region dominating the world.
Calls For A Multipolar And Cooperative World
Sachs argued that India and China should work together to promote a peaceful, multilateral global order rather than view each other primarily as competitors. He said the world needs greater cooperation, mutual respect and an understanding of different civilisations as economic power shifts towards Asia.
He also highlighted the relevance of ancient philosophical traditions, including Hinduism, Buddhism, Jainism, Christianity, Islam, Judaism and Confucianism, arguing that they share fundamental principles of peace, justice, reciprocity and respect. According to Sachs, education and the cultivation of individual responsibility and humility will be essential to addressing the challenges facing the modern world, including artificial intelligence, climate change and geopolitical conflicts.
(Disclaimer: New Delhi Television is a subsidiary of AMG Media Networks Limited, an Adani Group Company.)
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