INDIA AND THE G20

What is G20?
• It is an international forum consists of leading industrialised and emerging economies
• It focuses on important global economic challenges
• Reducing greenhouse gas emissions
• Maintaining international financial stability
• Promoting sustainable development
• The G20 account about 2/3rd of the world population
• The G20 account for 85% of the global GDP, over 75% of global trade
• The G20 was established in 1999 after the Asian financial crisis
• It was a regular forum for Finance Ministers and Central Bank Governors
• Aim - To study, review, and promote high level discussion of policy issues pertaining to
the promotion of international financial stability
• Member - It comprises of European Union and 19 countries (Canada, France, Germany,
Italy, Japan, UK, US, Russia, Australia, Canada, Saudi Arabia, India, South Africa, Turkey,
Argentina, Brazil, Mexico, China and Indonesia).
 Divisions of Countries G20
• The members are divided into 5 groups
• Each group consisting of a maximum of four states for choosing the President
• Group 1: Australia, Canada, United States, Saudi Arabia.
• Group 2: India, Russia, South Africa, Turkey.
• Group 3: Argentina, Brazil, Mexico.
• Group 4: France, Germany, Italy, United Kingdom.
• Group 5: China, Indonesia, Japan, South Korea
• The group does not have permanent secretariat.
• Every year, the host country chooses other guests
 Evolution and Development of G20
• G7 group
• It was set up in 1975, aftermath the twin exchange rate and oil crises of the early 1970s.
• Finance Ministers and Central Bank Governors of the G7 meet annually to discuss important
economic issues and challenges.
• Asian financial crisis
• In 1997, the Asian financial crisis ripped through some of the fastest-growing economies in East
Asia.
• It soon spread to Latin America, another hub of rapidly developing Global South nations.
• G22 group
• It was set up in 1998 as a G20’s earliest iteration due to Asian financial crisis. It was initially
conceived as a one-time crisis-response meeting.
• G33 group
• In early 1999, two more meetings were convened including 33 members (G33) to discuss reforms of
the global economy and the international financial system.
• Ad-hoc nature of the groups
• The dissatisfaction with the ad hoc nature of the G22 and G33 processes
• It led to the eventual formation of the G20 in late 1999
• G20 group communique
• It was issued by finance ministers of the G8 (Russia was added in 1997 and removed in 2014) on 1999.
• Informal dialogue
• It proposes to establish a new mechanism for informal dialogue among systemically significant economies in
Berlin.
• Creation of G20 leaders’ summit
• In 2008, the world saw perhaps the greatest economic crisis to hit since the Great Depression (1929-39).
• France, which held the EU presidency at the time, backed by the UK, argued for an emergency summit
meeting to address the crisis.
• First summit
• The ‘Summit on Financial Markets and the World Economy’ was convened in Washington DC in 2008.
• Annual summits have been held ever since.
 Structure and Functioning of G20
Working Channels
• There are 2 working channels of G20.
• Finance Track - It covers meetings between finance ministers and central bank presidents.
• Sherpa Track – It covers non-financial issues, such as political commitment, the fight against corruption, development, gender
equality, trade and energy.
Affinity group
• Civil societies participate in the G20 through affinity groups to enrich submit
Summit
• The G20 heads of government or heads of state have annually met at summits.
• The group also hosts separate meetings of finance ministers and central bank governors.
Global Governance Group (3G)
• It was formed by Singapore, an informal grouping of 28 non-G20 countries.
• It includes several microstates and many third world countries to collectively channel their views into the G20 process.
Troika
• The G20 does not have a charter or a secretariat.
• The Presidency is supported by the Troika, which includes the previous, current, and incoming presidencies.
• The G20 Presidency hosts the Summit and directs the agenda for a calendar year.
A non-binding forum
• G20 decisions are non-binding and not legally enforceable and member countries are not obligated to implement them.
Working with international organisations
• G20 members also collaborate closely with international organizations like the IMF, World Bank, and WTO.
 Significance / Need for G20
• New geopolitical order
• The emergence of the G20 in the international order arose from a combination of chance and necessity.
• It is partly the product of improvisation, which is a logical consequence of the socioeconomic evolution of the
world.
• Voice of Global South
• Communism become a thing of the past in 1990s and vibrant economies emerged in the Global South.
• There was a need for reform in world institutions that had hitherto been dominated by nations from the Global
North.
• Lack of world institutions
• UN and the International Monetary Fund (IMF) had not managed to overcome the North-South divide in their
mode of deliberation.
• More democratic world order
• G20 comprise of large countries that were both rich and poor, such as China, India and Brazil
• The North-South divide was no longer as clear
• Hence, G20 offered an initial response to the need for reform
• Recognition of Global South
• The Global North recognized the emerging economies in the Global South were not adequately represented
in global economic discussion and governance.
 Issues and Limitations of G20
• Difficulty in reaching consensus
• It is difficult for members countries to reach a consensus on important issues.
• During the 2008 global financial crisis, the G20 struggled to come up with a coordinated response.
• There has been friction within the group sometimes regarding the issue of climate change.
• Geopolitical tensions (Russia-Ukraine crisis) become the obstacle in consensus building
• No Permanent Secretariat
• The G20 does not have a permanent secretariat
• It is difficult to monitor and implement the decision\
• Non-binding decisions
• Member countries are not legally bound to implement the decisions made at G20 meetings.
• Ex. The G20 countries had agreed to a set of guidelines for preventing the financing of terrorism
• But there is no mechanism to enforce compliance with these guidelines.
• Limited membership
• The G20 only includes 19 countries and the European Union
• It means that other important economies are not included
• Expanding the membership could make the organization more representative
 Significance of G20 Summit 2023
• Wider areas of cooperation: The agenda of the G20 has been expanding from a broad macroeconomic policy to include
more areas of cooperation.
• The G20 summit in Hangzhou (China), 2016, saw the convergence of the US and China on the Paris Agreement.
• The G20 summit in Argentina, 2018 focused on fair and sustainable development.
• G20 summit in Germany, 2021 focused on the issues regarding money laundering, international tax havens, and corruption.
• G20 summit in Bali (Indonesia), 2022 focused on financial stability, humanitarian crisis, poverty, and aid to least developed nations, among
other things.
• Food security: The leaders promised to work together to address food security issues and praised the Black Sea grains initiative.
• Promoting gender equality: Recognize the importance of gender equality and commit to promoting it by increasing women's participation in
the workforce, reducing the gender pay gap, and improving access to education and healthcare.
• Global balance of power: The G20 promotes a more equitable distribution of power among developed and developing
countries than the earlier formed blocs such as G-7 and P-5 (UNSC), which helps to maintain a balance of power at the
global level.
• Bringing adversaries on a common platform: The importance of the G20 lies in its ability to bring together countries with
different ideologies, political systems, and economic interests onto a common platform to discuss and address global
economic issues.
• Addressing climate change: The G20 has recognised the threat of climate change and has taken some initiatives to
address it.
• The commitments adopted by the G20 members in the domain of climate change revolve around the following issues: energy efficiency
and renewables; adoption of advanced and clean technologies; resilient infrastructure; tackling environmental challenges like biodiversity
loss; adoption of the Circular Carbon Economy etc.
• Networking and collaboration: The G20 provides an opportunity for leaders from different countries to meet and exchange
ideas, strengthening relationships and promoting collaboration on economic issues.
• Global economic cooperation: The G20 has played a critical role in responding to economic crises such as the 2008 global
financial crisis, the Eurozone debt crisis, and the COVID-19 pandemic.
 India’s Presidency in G20
• India holds the Presidency of the G20 from 1 December 2022 to 30 November 2023
• Before India, Indonesia held the presidency in 2022, which concluded in the Bali declaration.
• Theme of G20 in 2023 was - ‘One Earth, One Family, One Future’.
• The theme affirms the value of human, animal, plant and their interconnectedness on planet Earth
• The Indian Presidency will also spotlight Lifestyle for Environment (LiFE)
• It emphasis on environmentally sustainable individual lifestyle
• It aim to achieve a cleaner, greener, and bluer future
• A total 18 summits were organized under Indian presidency
• The final and 18th G20 summit was organized at Bharat Mandapam, New Delhi on 9-10 Sept. 2023
• Leaders from major world economies attended the summit for a 2-day meeting
• The summit occurred during a period of Russia-Ukraine War
• The summit reflect India’s voice of the 'Global South.'
• The selection of themes to address the third world problems & Permanent membership to AU
• G20 successfully adopted the Delhi Decleration
• India formally handed over the G20 presidency to Brazil
• India will continue to hold the position until 30 November 2023
 Delhi Summit of G20
• Theme- ‘One Earth One Family One Future’.
• It means ‘Vasudhaiva Kutumbakam’ (the whole earth is a family) written in Devanagari script.
• The theme is drawn from the ancient Sanskrit text of the Maha Upanishad.
• The theme affirms the value of all life and their interconnectedness on the planet Earth
• The summit had India showcase its cultural richness through diverse elements
• Bharat Mandapam, inspired by Lord Basavaeshwara’s concept of Anubhav mandapam.
• The “culture corridor,” features a display of diverse traditions from 29 countries
• The Chola-style bronze statue of Lord Nataraja.
• Konark Chakra of Odisha’s sun temple
• The image of Nalanda University were used as backdrops.
• Showcase of Thanjavur Paintings and Dhokra art
• A brass statue of Lord Buddha under the Bodhi tree.
• Hindustani, Folk, and Carnatic musical heritage of India
• 9 countries were invited to the Delhi G20 Summit
• Bangladesh, Egypt, Mauritius, Netherlands, Nigeria, Oman, Singapore, Spain and UAE
• Six agendas were put forth for the G20 Dialogue 2023
• Green Development, Climate Finance & LiFE
• Accelerated, Inclusive & Resilient Growth
• Accelerating progress on SDGs
• Technological Transformation & Digital Public Infrastructure
• Multilateral Institutions for the 21st Century
• Women-led development
 New Delhi declaration
• The G20 2023 joint consensus declaration was adopted at Delhi Summit
• It was called the New Delhi Leaders Declaration
• It seeks to place emphasis on strong, sustainable, balanced, and inclusive growth
• Major highlights of the New Delhi declaration
• Global Economic Situation
• Unlocking Trade for Growth
• Fighting Corruption
• Recommitting to Achieving SDGs
• Strengthening Global Health and Implementing One Health Approach
• Designing a Circular Economy World
 India's G20 Priorities
• Green Development, Climate Finance and Lifestyle for Environment (LiFE) India's emphasis on
combating climate change, with a focus on climate technology and finance, as well as ensuring
equitable energy transitions for developing nations.
• Accelerated, Inclusive & Resilient Growth:Focus on initiatives that could result in structural change,
such as: assisting small and medium-sized businesses in international trade, advancing labour rights
and welfare, addressing the global skills gap, and constructing inclusive agricultural value chains and
food systems.
• Accelerating progress on SDGs: Recommitment to achieving the goals outlined in the 2030 Agenda
for Sustainable Development, with an emphasis on addressing the COVID-19 pandemic's effects.
• Technological Transformation and Digital Public Infrastructure: Encouragement of a human-centric
view of technology and increased knowledge exchange in areas like financial inclusion, digital public
infrastructure, and tech-enabled development in industries like agriculture and education.
• Multilateral Institutions for the 21st century: Efforts to reform multilateralism and build a more
accountable, inclusive, and representative global order capable of addressing the challenges of the
twenty-first century.
• Women-led Development: In order to promote socio-economic development and the achievement of
the SDGs, emphasis should be placed on inclusive growth and development, with a focus on women's
empowerment and representation.
 Significance of India’s G20 Presidency
• India’s growing economic influence
• As the fastest-growing large economy, India’s role in the G20 is critical
• Its presidency will help it further strengthen its economic ties with other G20 members.
• India’s leadership on climate change
• India has been a strong advocate for climate action.
• As the world grapples with the challenge of climate change,
• India’s presidency can help set the tone for global cooperation on this issue.
• India’s focus on inclusive growth
• By prioritising inclusive growth, India’s presidency will focus on issues such as infrastructure development, job creation,
and women’s empowerment.
• India’s strategic importance
• The presidency of the G20 will provide a platform for India to engage with other major powers
• Including the United States, China, and Russia, on issues of global importance.
• Becoming the voice of Global South
• By holding the meeting of the Global South countries along with G20 meetings,
• India has become the voice of the erstwhile sidelined Global South.
• India’s role in quality healthcare
• India has played a leading role in ensuring that developing and low-income countries have access to vaccines, financing,
and other resources they need to recover from the pandemic.
• Thus, India can ensure universal, quality, and affordable health services.
 Major outcomes of the G20 summit 2023
• Permanent membership to African Union
• The African Union joined the G20 as a permanent member
• It offers an opportunity to reshape global trade, finance, and investment and would provide a greater
voice to the Global South within the G20.
• It allows African interests and perspectives to be heard and recognized within the G20.
• Launching of the Global Biofuel Alliance (GBA)
• A new organization called the Global Biofuel Alliance (GBA) was launched
• It aim to promote the development and adoption of sustainable biofuels
• It will also work to set relevant standards and certification
• Adoption of New Delhi Declaration
• The New Delhi Leaders Declaration was adopted with consensus
• Agreement on India-Middle East-Europe Economic Corridor
• A group of countries signed a agreement to build a rail and shipping corridor
• The corridor will link India with the Middle East and Europe
• It will be called the India-Middle East-Europe Economic Corridor
• The group comprises India, Saudi Arabia, UAE, Jordan, Israel and the European Union.
• Overcoming major differences in the Russia-Ukraine war
• Call for full implementation of the Black Sea Grain Initiative
• Action Plan against Fugitive Economic Offenders
• Countering terrorism and money laundering
• Globally fair, sustainable, and modern international tax system
• Digital Public Infrastructure (crypto, Al, etc.)
• Gender equality and women empowerment
• G20 Deccan High-Level Principles on Food Security and Nutrition 2023
 Geopolitical Significance of G20 2023
• The absence of China's President Xi Jinping, the second-largest economy's leader,
garnered significant media attention. Speculation arose about whether Xi's non-
attendance, represented by China's Premier Li Qiang, was due to India-China tensions,
domestic challenges, or China's disillusionment with the US-dominated G20 in favor of a
new global governance system.
• Unlike last year's declaration, the G20 New Delhi Leaders' Declaration refrains from
explicitly condemning Russia. It calls on all countries to avoid actions against the
territorial integrity and sovereignty of states. Russia's President Vladimir Putin was
absent, represented by Foreign Minister Sergey Lavrov, who considered the summit a
[Link] criticized the G20's final declaration but thanked its allies for supporting
its position. Notably, key emerging economies from the Global South, like India, Brazil,
Indonesia, and South Africa, played a pivotal role in negotiating a compromise to ensure
all G20 members could sign the final declaration.
• The decision to grant permanent member status to the African Union, representing 55
African member states, underscores the increasing influence of emerging countries from
the Global South.
 Why is the G20 Presidency so important for India?
• The G20 Presidency is important for India for several reasons, including the following:
• Global leadership: Holding the G20 Presidency provides India with a unique opportunity to showcase its
leadership abilities on the global stage. It allows the country to shape and drive the global economic and policy
agenda, positioning itself as a key player in the international community.
• Economic development: As one of the fastest-growing major economies, India has a significant stake in global
economic stability and growth. The G20 Presidency enables India to advocate for its economic interests, such as
trade, investment, and development policies, and to align these with the broader global agenda.
• Promoting inclusive growth: India can use the G20 platform to push for policies that promote inclusive growth
and reduce inequality both within its own borders and across the G20 nations. This is particularly relevant as India
faces significant challenges in addressing poverty, income inequality, and social development.
• Climate change and sustainable development: India, as one of the largest greenhouse gas emitters, has a
major role to play in addressing climate change. The G20 Presidency enables India to promote its climate change
and sustainable development priorities, such as renewable energy, and drive collective action among member
countries.
• Strengthening multilateralism: The G20 Presidency provides India with the opportunity to foster cooperation and
dialogue among member nations, enhancing the importance of multilateralism in addressing global challenges.
This can help India develop stronger partnerships and collaborative efforts with other countries.
• Addressing global challenges: The G20 forum enables India to contribute to discussions and shape policies on
a wide range of pressing global issues, such as financial stability, employment, healthcare, and education. By
taking an active role in these discussions, India can ensure that its voice is heard and its perspectives are taken
into account.
 India's G 20 Priorities
• Infrastructure development and investment
• Financial inclusion and digitalization
• Climate change and sustainable development
• Global health and pandemic preparedness
• Reform of international financial institutions
• Inclusive, Equitable and Sustainable Growth,
• LiFE (Lifestyle For Environment),
• Women’s Empowerment,
• Digital infrastructure
 Questions
• Discuss the significance of G20 Summit in addressing global economic challenges and
fostering international cooperation.
• Analyze India’s role and contributions in addressing global challenges during the G20
Summit.