There are times when a country has the calling to step forward on the world stage and transform its role from that of a passive follower to that of a leader. That time has come for India—it must seize the moment.

The reordering of the global economic power structure, with the G20 now taking a prominent role, has created a leadership void among emerging markets.

There is the risk that the emerging market agenda could be taken over by countries that are seen as advancing just their own narrow interests. This would heighten tensions with advanced economies and work against global cooperation.

India’s innate economic dynamism and a few years of solid growth with low inflation have put it firmly at the centre of the world economic stage. The global crisis has nicked India but so far has not set back its growth greatly.

India’s response to the crisis has been far more mature than that of many developed economies, without reflexive moves towards financial protectionism or a reversal of initiatives towards financial market development. This gives India credibility that should allow it to punch beyond its weight class.

How can India advance the G20 agenda? Not only has India aligned itself with countries like the US, UK, Japan and China in calling for more macroeconomic stimulus but it has backed up words with concrete actions.

India’s actual stimulus measures this year will amount to nearly 5 per cent of gross domestic product. In leading by example, India has gained the moral clout to aggressively push for additional measures by countries that haven’t yet done their bit for coordinated global stimulus, especially if macroeconomic conditions should deteriorate further.

There is clearly a need for a rethink of regulatory principles and frameworks and for global coordination of regulatory efforts. However, the European approach of rushing to regulate may result in an outcome that is not favourable to emerging markets, which have less sophisticated financial markets.

India, which has considerable expertise and intellectual firepower on this matter, should articulate a clear position on how emerging markets can contribute to the development of global regulatory standards.

India should also lead the charge against financial protectionism and promote the free flow of goods, services and labour. This is of particular interest to India as some of its large cash-rich firms seek to invest in companies abroad and its highly-skilled workforce adds to the global talent pool.

India should lead the emerging markets’ charge in pushing for quota reform to be done now, with the increase in resources explicitly tied to those reforms.

India’s leaders have a lot on their minds — the economy is fragile, the global crisis may worsen and buffet the economy further, as national elections loom. Still, they have an obligation to step up and provide intellectual leadership to the international community at this critical juncture