India’s G20 Presidency
Globalisation is no longer cool word, & multilateral organisations have a credibility crisis as countries around the world pick being ‘G-zero’ (which denotes “every nation for itself”) over G7, G20, P5 & others.
G20 - account for > 85% of Global GDP, 75% of Global Trade, 60% of population.
G-20 is an important platform to help build international consensus and facilitate a coordinated approach between multilateral organisations, including the UN and its agencies, and global and regional actors to address the worsening humanitarian crisis in Afghanistan & Ukraine too.
G20 is a strategic multilateral platform connecting the world’s major developed and emerging economies. The G20 holds a strategic role in securing future global economic growth and prosperity, by making the rules of global economic governance.
The G20 was formed in 1999 in the backdrop of the Asian financial crisis of the late 1990s that hit East Asia and Southeast Asia in particular, and later on was upgraded to the level of Heads of State/Government in the wake of the global economic and financial crisis of 2007, and, in 2009, was designated the “premier forum for international economic cooperation”.
The G20 has no permanent secretariat. The president country every year sets up a temporary secretariat.
The presidency of the G20 rotates every year among its members, with the country that holds the presidency working together with its predecessor and successor, also known as Troika, to ensure the continuity of the agenda - India, Indonesia, Brazil – ensuring continuity of the agenda.
G20 members = Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Türkiye, United Kingdom and United States and the European Union.
Guest countries – Bangladesh, Egypt, Mauritius, Netherlands, UAE, Oman, Singapore, Spain, Nigeria
India holds the Presidency of the G20 from 1 December 2022 to 30 November 2023. The 18th G20 Heads of State and Government Summit will take place on 9-10 September 2023 in New Delhi.
India’s G20 logo and message –
The G20 Logo draws inspiration from the vibrant colours of India’s national flag – saffron, white and green, and blue. It juxtaposes planet Earth with the lotus, India’s national flower that reflects growth amid challenges. The Earth reflects India’s pro-planet approach to life, one in perfect harmony with nature. Below the G20 logo is “Bharat”, written in the Devanagari script.
India’s G20 logo bears a lotus and the message of ‘Vasudhaiva Kutumbakam — One Earth, One Family, One Future – belief in global harmony. 7 petals on the Lotus represent the 7 continents of the globe and also the 7 notes of music. The lotus flower symbolises our Puranic heritage, our aastha (belief) and boddhikta (intellectualism).
The theme of India’s G20 Presidency - “Vasudhaiva Kutumbakam” or “One Earth · One Family · One Future” - is drawn from the ancient Sanskrit text of the Maha Upanishad. Essentially, the theme affirms the value of all life – human, animal, plant, and microorganisms – and their interconnectedness on the planet Earth and in the wider universe.
“One Earth One Family One Future”, underlines the message of equitable growth and shared future of all.
India’s efforts will be to ensure that there is no first world or third world, but only one world.
India, with its mantra of ‘One Sun, One World, One Grid’, has called for a renewable energy revolution in the world. India took up a campaign of ‘One World, One Health’ to strengthen global health. Now, in the G20 also, our mantra is One Earth, One Family, One Future. These thoughts and values of India show the way for the welfare of the world.
For India, the G20 Presidency also marks the beginning of “Amritkaal”, the 25-year period beginning from the 75th anniversary of its independence on 15 August 2022, leading up to the centenary of its independence, towards a futuristic, prosperous, inclusive and developed society, distinguished by a human-centric approach at its core.
The G20 currently comprises:
# Finance Track, with 8 work streams (Global Macroeconomic Policies, Infrastructure Financing, International Financial Architecture, Sustainable Finance, Global Partnership for Financial Inclusion (GPFI), Joint Finance and Health Task Force, International Taxation, Financial Sector Reforms).
Ex-NITI Aayog CEO Amitabh Kant as India's Sherpa.
# Sherpa Track, with 13 work streams (Anti-corruption, Agriculture, Culture, Development, Digital Economy, Disaster Risk Resilience and Reduction, Employment, Environment and Climate Sustainability, Education, Energy Transition, Health, Trade and Investment, Tourism)
# 11 Engagement Groups of private sector/civil society/independent bodies (Business 20, Civil 20, Labour 20, Parliament 20, Science 20, Supreme Audit Institutions 20, Think 20, Startup20, Urban 20, Women 20 and Youth 20).
In addition to G20 members, there has been a tradition of the G20 Presidency inviting some guest countries and international organisations to its meetings and summit.
During India’s Presidency, 2 separate working groups on – Disaster Risk Resilience, Engagement Group: Startup group
Recent Summit and agreements –
Adopted Bali Declaration 2022 that underlined the need to “uphold international law”, and said the “use or threat of use of nuclear weapons is inadmissible”. Calling for a peaceful resolution of conflicts, it said that “today’s era must not be of war”.
G20 leaders endorse for 15 per cent minimum corporate tax deal to make the global financial architecture “more just and fair”.
PM Modi terms crisis of essential goods and lack of financial capacity of the poor a ‘double whammy’. PM Modi called for “a new world order post COVID period”.
Reaffirmed commitment to eradicate energy poverty.
Five point economic recovery agenda under 2022 Indonesia’s presidency –
staying agile, flexible in macroeconomic policy responses and cooperation.
Protecting macroeconomic & financial stability
Promote food & energy security
Unlocking investments for low & middle income countries.
Accelerating efforts to achieve SDGs
Stress on importance of all creditors in sharing fair burden.
Efforts to combat money laundering, terror financing to be stepped up and support FATF roadmap.
G20 nations back IMF initiative - Resilience Sustainability Trust to allow IMF member nations to lend their IMF reserves to other countries for confronting monetary & fiscal challenges due to Covid pandemic & Climate change.
India’s vision of “One Earth One Health”, or the need for a collaborative approach in the international domain in the fight against the pandemic. G20 established a joint Finance-Health Task Force to strengthen pandemic prevention, preparedness & response.
G20 has raised $1.4 billion for a global pandemic health fund to help avoid a repeat of the Covid-19 outbreak that killed over 6.6 million people and crippled the world economy. The World Bank will manage the fund to help low- and middle-income countries prevent and address future pandemics.
Trade & Commerce -
Prime Minister stressed on the need for resilient global supply chains & making India part of economic recovery and supply chain diversification.
rules-based, non-discriminatory, free, fair, open, inclusive, equitable, sustainable and transparent multilateral trading system (MTS), with the WTO at its core.
Global Agriculture and Food Security Program
leaders made a commitment to reach carbon neutrality “by or around mid-century”.
Agrees to pursue efforts to limit global temperature rise to 1.5° C
Adoption of Post 2020 Global Biodiversity Framework (GBF) with the view of realizing of 2050 Vision of “Living in harmony with Nature”.
According to Climate Transparency Report 2021, most G20 nations not enough to limit global warming to 1.5 degree. India's per capital GHG emissions are lower than G20 average & India is likely to achieve its NDC target.
G20 Financial Inclusion Framework on Harnessing Digitalization to Increase Productivity and Foster a Sustainable and Inclusive Economy for Women, Youth and MSMEs
Crypto Asset Reporting Framework was welcomed.
encourage international collaboration to further develop digital skills and digital literacy to harness the positive impacts of digital transformation, especially for women, girls, and people in vulnerable situations.
INDIA AND G 20 –
a founding member of G20
critical player in global economy for global growth with sustainability from climate change to health to education.
India is among most rapidly growing economy today in the world. India’s prowess in managing global economic challenges paves the way for itself to take a center stage at the world’s second-largest club.
It oﬀers India an opportunity to also champion the causes of developing and least developed countries
proposals in recent summits -
International action on terrorism
Dealing with economic offenders
Global taxation: Base erosion and profit sharing (BEPS) framework
Dealing with issues arising from New digital technologies.
Regarding the Ukraine conflict, return to the path of ceasefire and diplomacy in Ukraine.
Importance of G 20 – Achievements
A representative group including developed and emerging countries.
Global Economic Growth: Because of its size and strategic importance, the G20 has a crucial role in setting the path for the future of global economic growth. Initiatives such as -
Debt Service Suspension Initiative (DSSI), Common Framework for debt treatments beyond DSSI
G20 Sustainable Finance Roadmap
G20 Roadmap for Enhancing Cross-Border Payments
G20 principles for quality infrastructure investment
OECD/G20 two-pillar international tax package
Proposal to create a Financial Intermediary Fund (FIF) for pandemic PPR etc.
To address global crisis: Previous summits have addressed the 2008 financial crisis, the Iranian nuclear program, COVID-19 pandemic and climate change. E.g. Partners have committed for contributing to the WHO-led COVID-19 solidarity response fund.
Also, multilateral institutions such as the UN failed to address global geo-political situation like Ukraine crisis.
Tax reforms: It can help low income developing countries benefit from the ongoing and wide-ranging tax reforms to bring greater transparency to the international tax environment, through exchange of information, and address tax avoidance by large corporations through the OECD and Base Erosion and Profit Shifting (BEPS) project - Global Anti-Base Erosion (GloBE) Implementation Framework
At the Rome summit, G20, 2021, leaders endorsed an agreement of 15 percent minimum tax as well as new rules to redistribute some tax revenue from big multinational companies.
Recast bilateral ties: G20 summits offer rare opportunities to develop such relationships and recast bilateral ties. Bilateral meetings on the summit’s sidelines have occasionally led to major international agreements.
Human Resource Development and Employment: In 2014, the G20 committed to reduce the gender gap in workforce participation by 25% by 2025. In support of this initiative the G20 also developed National Employment Plans which provide opportunities for inclusion.
Critical role in the ratification of the Trade Facilitation Agreement of WTO.
Increasing the lending capacity of the IMF
Indonesia, India and Brazil (previous, current and incoming Presidency) would form the troika during India’s presidency. This would be the first time when the troika would consist of three developing countries and emerging economies, providing them a greater voice.
Its’ the G20 presidency with Indonesia in 2022, India in 2023, Brazil in 2024 and South Africa in 2025. This is for the first time the leaders of Global South are going to set the agenda of sustainable, inclusive, resilient and equitable world order.
The present troika is also a moment for regional groupings like Southeast Asia, South Asia and others to seek greater economic convergence on sustainable development goals.
Issues with G 20
Lack of effective power: It has been argued that G20 is not a legally binding institution and needs to be given more teeth.
The growing tussle between G7 along with EU v/s Russia and China, in line with Ukraine crisis and recent Taiwan dispute is culmination of absence of consensus based approach.
G20 lacks an objective framework through which to set goals and measure progress.
Transparency and Accountability: The absence of a formal charter for the group and the fact that some of the most important G-20 meetings are held behind closed doors.
Protectionism: Some of the group's policy prescriptions have also been unpopular, especially with liberal groups like encouraging trade agreements that strengthen large corporations.
Ineffective measures: It is criticized for being delinquent in combating climate change, and in failing to address social inequality and global threats to democracy.
Under-representation: Critics argue that the group is overly restrictive, and its practice of adding guests, such as those from African countries, is little more than a token effort to make the G-20 reflective of the world's economic diversity.
Road ahead for G 20
Continuity of issues taken up across presidencies.
Provide the vision to bind all the countries especially the emerging markets.
Strengthen the ties with the UN in promoting development.
Focus on infrastructure and food security.
Post COVID, critical role to build robust global supply chains.
G20 leaders need to push for a “more open, stable, and transparent rules-based trade” that would help address global shortages of goods.
There is no other forum of the world which can – accelerate pace of the growth, accelerate sustainability, accelerate trade and ensure vast segments of people rise above poverty line.
G20 is a platform that focuses on People, Planet, Prosperity. The world is so interconnected and integrated now that countries have to work together to resolve all global issues. For equitable, inclusive and sustainable global recovery; we need to restore faith in multilateralism and multilateralism will have to be at the heart of growth in the future.
Why we need new model of cooperation?
Multilateral commitments are faltering: Governance in a world that is steadily becoming more equal needs institutional innovation. This is because the role of the United Nations and the World Trade Organization in securing cooperation between donor and recipient country groups is losing centrality.
There are now three socio-economic systems — the G7, China-Russia, and India and the others — and they will jointly set the global agenda.
Strategic competition: Ukraine conflict, rival finance, the expanding influence of the trade and value chains dominated by the U.S. and China, and the reluctance of developing countries to take sides in the strategic competition as they have a real choice requires fresh thinking.
Preventing the clash of ideas through reorientation: The primary role of the G20, which accounts for 95% of the world’s patents, 85% of global GDP, 75% of international trade and 65% of the world population, needs to be reoriented to prevent a clash of ideas to the detriment of the global good.
The solution lies in a new conceptual model seeking agreement on an agenda limited to principles rather than long negotiated anodyne text.
Our G20 Presidency would place India on the global stage, and provide an opportunity for India to place its priorities and narratives on the global agenda.
There's a world between G7 & G20 & India stands at a very important doorway between both as a bridge.
Agenda when India hosts G20 in 2023
India’s G20 presidency, a “watershed moment” comes with a “crucial responsibility” at “a very challenging time in world politics and at an inflection point in India’s own history”. There is a geopolitical crisis. There is a challenge of breakdown of the global supply chain. There is a crisis of climate finance and climate action. Several countries of the world are facing a global debt crisis, and as a consequence of COVID, 200 million people have gone below the poverty line.
1] Underlining the need for new framework - redefining common concerns:
First, the presumed equality that we are all in the same boat, recognised in the case of climate change, needs to be expanded to other areas with a global impact redefining ‘common concerns’.
Second, emerging economies are no longer to be considered the source of problems needing external solutions but source of solutions to shared problems.
Third, the BRICS provides an appropriate model for governance institutions suitable for the 21st century where a narrow group of states dominated by one power will not shape the agenda.
Ensuring adequate food, housing, education, health, water and sanitation and work for all should guide international cooperation.
Principles of common but differentiated responsibilities for improving the quality of life of all households can guide deliberations in other fora on problems that seem intractable in multilateralism based on trade and aid.
2] Avoiding strategic competition
Overriding priority to development suggests avoiding strategic competition.
Countries in the region will support building on the 1971 UNGA Declaration designating for all time the Indian Ocean as a zone of peace and non-extension into the region of rivalries and conflicts that are foreign to it.
3] India’s approach to the G20 Presidency is guided by –
greatest challenges can be solved not by fighting with each other but by acting together.
technology gives us the means to address problems on a humanity-wide scale.
digital public goods that we have created are increasingly perceived by the world as delivering revolutionary progress.
India’s experiences can provide insights for possible solutions.
our G20 priorities will be shaped by the interests of the global south & emerge as the “voice of the Global South” – comprising Asia, Africa, Latin America.
encourage sustainable and environment friendly lifestyles based on trusteeship over nature.
depoliticise the global supply of food, fertilisers and medical products.
encourage an honest conversation among the most powerful countries.
What could India bring to the table?
Housing one-sixth of humanity, and with its immense diversity of languages, religions, customs and beliefs, India is a microcosm of the world. The presidency presents a unique opportunity for India’s foreign policy to put its stamp on the global agenda.
Primarily, India’s G20 Presidency will be revolving around – reviving global growth, food and energy security, global health architecture, digital transformation and sustainable energy transition.
In the backdrop of Ukraine crisis, US v/s China rivalry, India is a crucial player in post COVID world order to continue the G20 agenda for a strong, sustainable, balanced, inclusive recovery and a durable recovery.
G20 presidency oﬀers a unique branding opportunity for India’s recent achievements, including the ability to combat COVID19 eﬀectively at home and abroad through vaccine aid and diplomacy. Other major achievements are India’s digital revolution, its steady progress in switching to renewables, meeting its targets to counter climate change, push for self-reliance in manufacturing, etc.
Mediation: an opportunity to India to assume the mantle of a peace-maker and consensus builder on behalf of the Global South amid Ukraine crisis, US-China tensions. Maintaining its balanced stance, India needs to neutralize this situation by introducing peace talks between the two nations.
Balancing comprehensive strategic relations with major powers like US and Russia while maintaining strategic autonomy.
Ensuring a stable and multipolar balance of power to evolve a world order based on the principles of UN charter, rules-based, etc.
Open trade: It’s about time for India to raise its voice in support of a transparent New Economic Order and building a prosperous and just world. Unreasonable bans on certain commodities from various countries limits commerce between states when trade liberty exists.
push for global consensus on maintaining stable supply chains for food and fertilisers to build food security globally, and for stable energy supplies.
India could be the centre stage for global supply chains by bringing South Asia into the picture especially Sri Lanka and Bangladesh.
Keeping food security concerns in mind, International Year of Millets is to be observed in 2023 and since, India is one of the world’s largest producers of millets it should form an alliance of major millets producers for sharing of technologies and best practices in agriculture.
India’s experience in creating three centres of excellence for millets production can be replicated in other suitable parts of the world supported by appropriate global financing mechanisms.
Advancing Indian representation and leadership on matters of global governance such as climate change, terrorism, marine security, connectivity.
Collaboration around science and technology: The global agenda has been tilted towards investment, whereas science and technology are the driving force for economic diversification, sustainably urbanising the world, and ushering the hydrogen economy and new crop varieties as the answer to both human well-being and global climate change.
India could push its digital public goods to global that are open, inclusive and interoperable. E.g. CoWIN, Aadhar, Digilocker, ONDC, UPI, etc. The country’s exemplary success with the Unified Payments Interface (UPI), Direct Benefits Transfer and Aadhaar authentication in welfare schemes has growing relevance to the developing world. The use of the CoWIN platform enhanced vaccine accessibility and equity. India has made a strong pitch for a TRIPS waiver to ensure equitable access to vaccine production.
Collaboration in health sector: Public health has to learn from the COVID-19 fiasco with infectious diseases representing a market failure. A major global challenge is the rapidly growing antimicrobial resistance which needs new antibiotics and collaboration between existing biotechnology facilities.
India being the champion of vaccine diplomacy is a critical player in health sector innovation, especially could set agenda for digitization of health in line with ABDM and bring consensus for global fund for future emergencies.
Collaboration in space technology: Space is the next frontier for finding solutions to problems of natural resource management ranging from climate change-related natural disasters, supporting agricultural innovation to urban and infrastructure planning. Analysing Earth observation data will require regional and international collaboration through existing centers which have massive computing capacities, machine learning and artificial intelligence.
India can emerge as a key player in clean and safe space exploration due to the recent phenomenal reforms being taken in light with NSIL, IN-SPACe, SpaceCom and SpaceRS policies, etc.
Redefining digital access as universal service: Harnessing the potential of the digital-information-technology revolution requires redefining digital access as a “universal service” that goes beyond physical connectivity to sharing specific opportunities available. So, it’s imperative to build a framework for global digital governance and have an inclusive digital public architecture.
principle of "data for development" will be an integral part of the overall theme of India's G-20 Presidency. Digital access has to be truly inclusive.
Reviving Global Financial Transaction Tax: A Global Financial Transaction Tax, considered by the G20 in 2011, needs to be revived to be paid to a Green Technology Fund for Least Developed Countries.
Among all member states, India is the only country that have achieved its NDC targets 9 years ahead of the schedule, ensuring a string commitment to tackle climate change. At the COP26 in Glasgow, India proposed Mission LiFE, which places individual behaviour at the centre of the global climate action narrative as Pro-Planet People (P3).
PM Modi’s “Panchamrit” announcements at COP26 established India as a climate leader. G20 will provide a platform to give a fillip to the idea of, “One Sun, One World, One Grid”.
push the Global North on its promise of climate finance and tech transfer to developing countries.
India can speak — and act — on behalf of the Global South, to ensure that the new Loss and damage (or L&D) financing facility delivers.
Pushing for the Blue economy, India’s global initiatives in recent years such as SAGAR (Security and Growth for All in The Region), “blue economy”, “clean oceans”, and disaster-resilient infrastructure have the potential to gain traction in the G20.
India will work to deliver global goods as a voice for the Global South with India’s commitment to advancing South-South cooperation. India will work with other G20 members to address serious issues of debt, of economic growth, food and energy security and of environment. The reform of governance of multilateral financial institutions will be one of core priorities.
India’s presidency should represent the widest and most vulnerable constituencies, especially in South Asia. This can truly advance intra-South Asian economic integration, which is so essential for India’s rise.
advance the interests of the developing world and to assert the leadership of the Global South.
India needs to get ready to emerge as the chief global diplomat. An important aim should be to end Africa’s marginalization by elevating the African Union (AU) from permanent observer to a full ﬂedged member of the G20, thus placing it on a par with the EU.
India is such a rich and living democracy of the world. We have the values and a proud tradition in the form of the mother of democracy. India has as much uniqueness as it has diversity. “Democracy, diversity, indigenous approach, inclusive thinking, local lifestyle and global thoughts, today the world is seeing solutions to all its challenges in these ideas.
India’s G20 Presidency a presidency of healing, harmony and hope – Our priorities will focus on healing our “One Earth”, creating harmony within our “One Family” and giving hope for our “One Future” to shape a new paradigm of human-centric globalization.
For healing our planet, we will encourage sustainable and environment-friendly lifestyles, based on India's tradition of trusteeship towards nature.
For promoting harmony within the human family, we will seek to depoliticise the global supply of food, fertilizers and medical products, so that geo-political tensions do not lead to humanitarian crises. As in our own families, those whose needs are the greatest must always be our first concern.
For imbuing hope in our future generations, we will encourage an honest conversation among the most powerful countries - on mitigating risks posed by weapons of mass destruction and enhancing global security.
India leading G20 is especially important for G20 because its time now for G12 to start leading the G20 rather than the G7 start leading the G20.
Issues and Challenges for India
India need to have a clear global financial agenda.
The country should also have the capacity to lead the G20 year intellectually, financially, managerially and administratively.
Geopolitically, India is more internationally engaged but less so geoeconomically.
Its narrow focus is on the World Bank, IMF, WTO and foreign investment issues.
But India has much to contribute on issues like reconfiguration of global financial regulations, design of a new framework for trade in services and the digital economy and establishing better cross-border standards for transparency in financial flows.
To make its G20 year a success, India has to address organizational challenges, where the country has an infrastructure, management and intellectual gap.
It is said that “those who hold the pen, write the rules”. The time has come for India to both hold the pen and write the rules for a more equitable global economics and governance.
India's G-20 presidency will be inclusive, ambitious, decisive, consultative, collaborative and action-oriented to further global good. Together, we will make the G20 a catalyst for global change. This is for the 1st time a rare opportunity for India to set the agenda for the world and bringing common priorities for growth, dynamism, lifting people above poverty line and ensuring that there is climate action.