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India’s G20 Presidency as a Watershed moment

Last updated on July 13th, 2024 Posted on December 2, 2022 by NEXT IAS Current Affairs Team  3462

In News

  • India has formally assumed the presidency of G20 on December 1, 2022.
    • India will hold the presidency till 30th November 2023.
    • India’s theme as stated by the Prime Minister is — “One Earth, One Family, One Future”.

More About The News

  • Agenda:
    • The Prime Minister had described India’s agenda at the G-20 as “inclusive, ambitious, action-oriented”.
  • Sharing India’s experience:
    • He added, “During our G-20 Presidency, we shall present India’s experiences, learnings and models as possible templates for others, particularly the developing world. 
  • Significance of 2023, G20 Summit that is scheduled to be held in New Delhi:
    • The G20 summit would be qualitatively different from any of the previous multilateral summits that India has hosted. 
    • Assembly of World’s largest economies:
      • None of the previous summits had the world’s largest economies assembled in one place nor did they have the entire P-5 (permanent members of the UN Security Council) represented. 
        • In that sense, the G-20 summit would be the first of its kind in Indian history.
    • Depoliticisation: 
      • To promote harmony within the human family, we will seek to depoliticise the global supply of food, fertilisers and medical products, so that geopolitical tensions do not lead to humanitarian crises.

Know about G20

  • Origin:
    • The G20 was formed in 1999 in the backdrop of the financial crisis of the late 1990s that hit East Asia and Southeast Asia in particular. 
    • Its aim was to secure global financial stability by involving middle-income countries. 
    • As stated by the official G20 Website: 
      • “On the advice of the G7 Finance Ministers, the G20 Finance Ministers and Central Bank Governors began holding meetings to discuss the response to the global financial crisis that occurred,” 
  • Objectives:
    • Policy coordination between its members in order to achieve global economic stability, sustainable growth;
    • To promote financial regulations that reduce risks and prevent future financial crises; and
    • To create a new international financial architecture.
  • Members & guests: 
    • Members: 
      • Argentina, Australia, Brazil, Canada, China, France, Germany, Japan, India, Indonesia, Italy, Mexico, Russia, South Africa, Saudi Arabia, South Korea, Turkey, the United Kingdom, the United States, and the European Union. 
      • Spain is also invited as a permanent guest.
    • Others: 
      • Each year, the Presidency invites guest countries, which take full part in the G20 exercise. Several international and regional organizations also participate, granting the forum an even broader representation. 

  • Together, the G20 countries include: 
    • 60 percent of the world’s population, 
    • 80 percent of global GDP, and 
    • 75 percent of global trade.
  • Presidency of G20 & Troika:
    • The presidency of the G20 rotates every year among members.
    • The country holding the presidency, together with the previous and next presidency-holder, forms the ‘Troika’ to ensure continuity of the G20 agenda. 

What can India share with the World during its G20 Presidency?

  • Presenting Diversity:
    • The G20 presidency is an opportunity to present the diversity that is India to the outside world. 
  • Management during pandemic:
    • Among large democracies, India has by far been the best performer in handling the Covid-19 pandemic. 
      • For the world, the Indian public goods delivery mechanism, at a billion-plus scale, has set a new template. 
    • The management of the economy by India during the pandemic has been extraordinarily prudent with prescient decision-making.
  • Independent foreign policy:
    • India’s independent foreign policy, so visibly demonstrated in the ongoing NATO-Russia (Ukraine) war, has made the world sit up and take notice. 
      • The assertion of its national interest is also markedly different from the “glory” days of Non-Aligned Movement.
  • Employment and environment:
    • G20 can act as a forum to exchange experiences on societal benefits and growth as complementary goals would lead to fresh thinking on employment and environment.
    • India has its own initiatives like “LiFE Movement” & “The One Sun One World One Grid” to offer to the world.
  • India’s own success models to offer the world. 
    • From scaling up of a seamless digital payment model built on the public digital infrastructure (UPI) to the unique digital identity, and from the successful financial inclusion model of the bottom quintile to the seamless transition to green energy, India now has many models to showcase, particularly for the developing world.

Global Challenges, Opportunities & Way Ahead

  • Currently, there are five challenges plaguing the world that the G20 can attempt to fix. 
    • First and the most pressing is the in-your-face Russia–Ukraine conflict.
    • The second challenge is of rising prices, particularly of food.
    • The third challenge is energy. 
      • Russia is teaching the world that while sanctions against it could impact its economy in the future, in the short term, these sanctions are failing. 
    • As rising food and energy prices lead to inflation, the fourth challenge is the manner in which countries are attempting to fix the problem. 
    • The fifth challenge is the threat of stagflation.
  • Opportunities:
    • Hosting the G20 Presidency would also result in economic opportunities in different sectors such as tourism, hospitality, IT and civil aviation among others.
      • The sectors of significant importance would be ranging from energy, agriculture, trade, digital economy, health and environment to employment, tourism, anti-corruption and women empowerment, including in focus areas that impact the most vulnerable and disadvantaged. 

Source: BS

 
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