India to take lead in defining global rating standards for ESG: Sanyal
Sanjeev Sanyal, a Member of the Economic Advisory Council to the Prime Minister, while speaking at the Africa Partnership Conference in Mauritius, emphasised on the importance of having clear Environmental, Social & Governance (ESG) norms.
The two-day Africa Partnership Conference envisaged to spur cross-boundary collaboration, which kicked off in Mauritius on October 2, will be an ideal platform for Indian stakeholders to pursue wider bilateral trade and strategic goals.
Sanyal in his address, stressed that ESG norms would soon have a significant impact on various aspects of our global landscape. While the term ESG is widely recognized, precise norms have yet to be established.
Currently, ESG norms are being defined by various ad hoc groups and NGOs.
However, Sanyal underlined the urgent need for globally recognized ESG norms and effective monitoring of their implementation.
Sanyal also said that India is keen to take the lead in forming ESG norms in line with their efforts with assigning sovereign ratings to countries worldwide.
He said that, traditionally sovereign ratings have been dominated by the three private companies such as Moodys, Standard and Poor, and Fitch. India's own rating agency, Care Edge, has successfully developed a methodology for the same.
Over the next few months, Care Edge aims to rate approximately 40 countries, with plans to complete ratings for the rest of the world by March 2024.
India intends to replicate this approach for defining and rating ESG norms.
Sanyal also discussed India's economic growth amid global geopolitical changes and the post-Covid recovery. He projected India's economy to grow at nearly 7% this year, with an expected growth rate of around 8% in the coming years.
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