Post the global financial and economic crisis, the world economy in 2011 settled into a protracted period of recovery and rebalancing. As governments stepped back from stimulus spending, the encouraging growth of the previous year gave way to anxieties about deceleration, accompanied by multiple downside risks. Emerging challenges of the new multi-polar age call for innovative solutions that would have to be jointly developed by the world.

In the vulnerable economic environment, the Indian economy clocked 8.5 per cent GDP expansion for 2010-11 and remained one of growth engines of the global economy. Its outward engagement in terms of trade and investment with the rest of the world continued at an elevated pace, and it is viewed as a land of new opportunity for business. Yet, India faces myriad challenges of poverty and inclusive growth. In order to continue in its mission of growth and human development, India needs strong partnerships with world economies and a new format of innovation in its economic DNA.

The Partnership Summit 2012, themed 'New Age Innovation Partnerships', would be the platform for exploring the various facets of innovation that can drive future global growth and the roles that India can play in fostering and strengthening the forces of such innovation. To be held in the progressive city of Hyderabad, it would highlight the cutting edge technologies currently emerging out of India and build new partnerships for evolving and dispersing innovation.

Global Economy: The first half of 2011 witnessed major socio-political developments that have significant bearing on the global economy. The Arab Spring brought regime change in several Middle East and North African nations as well as renewed conflicts in others. In Japan, the earthquake and tsunami devastated lives, ruptured the economy and flagged safety of nuclear power installations. Stressed EU economies are still fragile and need support from fellow members to overcome high public debt and deficits.

According to the IMF's World Economic Outlook update in June 2011, global activity is undergoing temporary moderation, while a multi-speed recovery continues in different parts of the world. World GDP went up by 4.3 per cent in the first quarter of 2011 and the IMF expects this level to be sustained in 2011 and 2012. The IMF calls for fiscal consolidation and financial sector reforms in advanced economies and demand rebalancing in emerging countries.

The specters of inflation and financial volatility as well as euro area financial stability and protracted unemployment are mentioned as downside risks to global growth. Within this scenario, the urgency of global partnerships remains keen as collective action for recovery continues to be an imperative. Most important, the global imbalances that were at the core of the crisis need to be redressed. New thinking on these issues could alleviate some of the prevailing quagmire.

Indian Economy: The Indian economy is undergoing major structural transformation, driven by favorable demographics, rising per capita incomes and facilitative macroeconomic and sectoral policies. Critical policy actions are expected in the coming few years that will further unlock the vast potential of GDP expansion that will serve as a crucial hub of growth for the global economy.

India is setting the pace for a new global economic model that is increasingly defined by innovation. Driven by domestic consumption, an innovative entrepreneurial class, and global integration, India's new development experience is being termed the Inclusive Growth model. The chief characteristic of this model is creating an enabling climate for doing business that fosters rapid expansion of the economic pie, accompanied by targeted Government schemes channeling income to those who need it most.

India's growth is an example of an economy that, in the words of Lawrence Summers, is "A consensus based globally not on the idea that competitiveness was in service of a nation trying to win a zero sum game, but rather on the idea that through international integration, nations could diversify, pursue their strengths, and realize together the benefits of larger global markets." Innovation at all levels of economic activity is the hallmark of the new Indian growth model.

New Age Innovation: As the world rebalances and multi-polarity emerges, new forms of innovation will be required. Most critical, these formats would have to be jointly developed through collaborative research. For the emerging world, innovation is needed to develop cost-competitive new products to meet felt needs of emerging middle classes - for education and healthcare, for connectivity, and for sustainable lifestyles. For higher income consumers, innovation would be related to carbon emissions and energy efficiency as well as research itself. India is already a laboratory for the world in many of these areas.

In particular, India would need to innovate to strengthen partnerships with its traditional friends as well as with new markets. Its trade profiles and investment relations with a resurgent China and a vibrant Africa would be particularly relevant for its future interests.

The Partnership Summit 2012, the flagship international event of the Confederation of Indian Industry, would bring together economic and commercial policymakers, businesses, innovators, and the public at large for relevant discourse on the current status of innovation in all spheres of activity, and would help evolve a roadmap for leveraging innovation for global inclusive growth and development. To be held in Hyderabad, one of modern India's iconic urban agglomerations, in January 2012, the eighteenth edition of The Partnership Summit will be co-hosted by the Department of Industrial Policy and Promotion of the Ministry of Commerce and Industry, India, the Government of Andhra Pradesh, and the Confederation of Indian Industry.