India's G20 Presidency: Here's What May Be On Agenda
India will be taking on the G20 presidency from Indonesia at a turbulent time, says Finance Minister Nirmala Sitharaman.
Discussions on debt, sustainable development goals, food security, the perspective of emerging markets and reforming the role of financial institutions are key topics expected to be addressed as India takes on the Group of Twenty or G20 presidency from December 2022.
India will be taking on the presidency from Indonesia “at a turbulent global situation”, Finance Minister Nirmala Sitharaman said, in her opening remarks at the ICRIER 14th annual G20 Conference.
The event also featured an address from the G20 Sherpa Amitabh Kant and Chief Economic Advisor Anantha Nageswaran.
The IMF has predicted the year 2023 to "feel like a recession" and a period of slow growth for the U.S., China and Europe, Kant said. Countries have also faced a setback of almost four years in their sustainable development goals because of Covid-19, he said.
While the final list of priorities for the G20 are yet to be unveiled by Prime Minister Narendra Modi, Sitharaman identified certain topics of interest.
Key Topics Likely To Feature At G20
Global Macroeconomic 'Spillover'
“What India will prioritise on is reflecting on the global (collateral) spillover,” Sitharaman said.
Emerging countries have been facing the brunt of monetary tightening in developed economies like the U.S. and the U.K., and the 'spillover' of the developing situation across the Black Sea, referring to the Russia-Ukraine crisis.
The upcoming presidency will also feature the voice of emerging markets, she said. Incumbent host Indonesia, the upcoming host India and Brazil, the next G20 host, are all categorised as emerging countries.
Readiness to tackle 'spillovers' and the preparedness for the same will be one of the priorities, she said.
Debt Distress
Debt vulnerability is expected to be a key issue for India, with focus on who will provide relief and what will be the extent of burden sharing.
“Debt vulnerability is important for developing as well as countries regarded as developed,” said Nageswaran, who addressed the conference before the Finance Minister.
Sustainable Development Goals
The process of achieving sustainable development goals should be clear for all and “must be low income country friendly”, Sitharaman said, highlighting the need to refocus on these goals which faced a setback from the pandemic.
Reform Of Multilateral Financial Institutions
In her address, the Finance Minister also called for a reform of multilateral institutions. "We need to understand how multilateral financial institutions are going to be better reformed," she said.
Sitharaman questioned if the institutions were fatigued and whether they were leveraging their endowments optimally.
Prime Minister Narendra Modi had previously called for a reform of multilateral institutions like the United Nations, the World Bank and the International Monetary Fund.
“…The question is do they want to fund themselves better and unlock the potential they have?” Sitharaman said.
Showcasing Digital Agenda
India’s achievements with the Unified Payments Interface, the Aadhaar Identification system and contribution to the India Stack are expected to also find a mention.
“India’s digital achievements will have to be showcased as members of G20 have shown desire to know how they could really do it,” she said. “Many of them are also engaging with us to see if their systems and our systems can be interoperable.”
International Taxation
India’s G20 presidential stint is expected to serve as a period of attaining consensus on matters requiring global cooperation.
India can bring consensus on issues such as pandemic preparedness, in terms of the financing and health approach, and issues like global taxation, Sitharaman said.
Crypto Regulation
A much-anticipated discussion on cryptocurrency and virtual asset regulation is also expected.
A 2019 legislation on banning cryptocurrency was withdrawn from the Parliament and a final word on the same is yet to be announced amid concerns of national interest.
“We need to understand how crypto assets can be regulated with all countries being on board, because no one country can succeed individually to regulate crypto assets,” Sitharaman said.
Food And Energy Security
Immediate food and energy requirements of countries due to the Russia-Ukraine crisis is also expected to feature in the G20 discussions.
Sanctions against Russia and actions taken by countries is something we will discuss with other G20 members, Sitharaman said.