19 May 2023, Mumbai: India’s presidency of the G20, which began in December 2022, has gained significant attention as the focus of global economic power shifts towards Asia. As the largest democracy and a rapidly growing economy, India’s G20 presidency holds great importance in building upon the achievements of previous presidencies. The G20 is an annual gathering of Finance Ministers and Central Bank Governors from 19 nations and the European Union, serving as a platform for discussions on global economic and financial matters. Together, the G20 nations represent a large portion of the world’s population, trade, and GDP. The motto for this G20 meeting is “Vasudhaiva Kutumbakkam,” meaning “The World is One (my) family.”
Established in 1999, the G20 consists of 19 nations and the European Union, bringing together Finance Ministers and Central Bank Governors to engage in discussions on global economic and financial issues. The G20 represents a significant portion of the world’s population, global trade, and GDP, making it a premier forum for international economic cooperation. Following the global financial and economic crisis in 2007, the G20 was elevated to the level of Heads of State and Government, further emphasizing its importance.
The G20 operates through two main channels: the Finance Track involving finance ministers and central bank governors, and the Sherpa Track. Sherpas, personal representatives of the leaders from member countries, play a crucial role in managing negotiations, shaping the summit’s agenda, and coordinating the efforts of the G20 throughout the year.
During India’s G20 presidency, the country’s key priorities will include topics such as Green Development, Climate Finance, inclusive and accelerated growth, sustainable development, technological advancement, digital infrastructure, multilateral institutions for the 21st century, and women-led development. The focus on accelerated economic growth is crucial, especially in light of concerns about a potential recession. Small and medium-sized enterprises (SMEs) will also play a significant role in driving growth, as they make up a large portion of businesses globally and contribute to employment.
India recognizes the importance of trade routes and access to resources, advocating for international financial institutions to be more responsive to the funding needs of micro, small, and medium enterprises (MSMEs). Reforming multilateral financial institutions to better align with the requirements of developing nations will be a key agenda item during India’s presidency.
India’s G20 presidency comes at a critical time, as it is projected to become one of the top four global economies by the end of the decade. As such, there are high expectations for India to contribute solutions to global challenges and serve as a bridge between developed and developing nations. India’s primary goal is to address these challenges and foster collaboration between nations around the world.