India successfully built best digital economy, finance architecture in world, says Michael Spence

India is a major economy with the highest potential growth rate right now, Nobel laureate economist A Michael Spence said. While addressing students and faculty at the Bennett University in Greater Noida on earlier this week, Spence, who was awarded the Nobel prize in Economic Sciences in 2001, also said that India successfully developed (by far) the best digital economy and finance architecture in the world.

“The major economy with the highest potential growth rate right now is India. India has successfully developed by far the best digital economy and finance architecture in the world. It is open, competitive and delivers services of an inclusive kind to a vast array of territory,” the Nobel laureate said, according to a statement issued by the varsity.

He also pointed out that the world is experiencing a “kind of regime change in the global economy”.

Tracing the evolution of the global economy after World War II, Spence said that the 70-year-old global system is "breaking down" due to pandemics, geopolitical tensions, climate shocks, etc.

Emphasising that the global system -- built on economic criteria like global supply chain centred around efficiency and comparative advantage considerations -- is undergoing a rapid transition, he pointed out that "in a shock-prone world, it doesn't make sense to have single sourcing".

With the centre of gravity shifting steadily towards the East, there is a fundamental change in the global economy whereby supply chains are getting diversified and global governance is becoming more complicated than ever before, Spence added.

(With PTI inputs)