Economic Update: March 2023

What is G20?

• The Group of Twenty (G20) is an intergovernmental forum comprising 19 countries.
• The G20 members represent around 85% of the global GDP, over 75% of the global trade, and about two-thirds of the world population.
• The G20 was founded in 1999 after the Asian financial crisis and after 2009, was designated the “premier forum for international economic cooperation”.
• The G20 Summit is held annually, under the leadership of a rotating Presidency. The G20 Presidency steers the G20 agenda for one year and hosts the Summit. It consists of two parallel tracks: the Finance Track and the Sherpa Track. Finance Ministers and Central Bank Governors lead the Finance Track, while Sherpa’s (personal emissaries of the Leaders) lead the Sherpa Track.

India’s G -20 Presidency:

• India holds the Presidency of the G20 from Dec 2022 to Nov 2023. The 43 Heads of Delegations- the largest ever in G20-will be participating in the final New Delhi Summit in September 2023.
• 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.

• India’s G20 Priorities:

  Divergences on the issue of Ukraine-Russia war:

  • G20 talks of top diplomats in February ended without consensus due to Ukraine-Russia war as Russia and China objected to joint communication language which was directly from G20 Indonesian summit.
  • S secretary of state said that the meeting was marred by Russia’s unjustified war against Ukraine and following destruction. He said that world must continue to call on Russia to end its war of aggression. U.S. also accused China of considering to arm Russia for use in the war.
  • China on the other hand counter accused U.S. and west on promoting war by supplying Ukraine with weapons and by pursuing illegal unilateral sanctions.
  • India would like to take a reconcilable approach on the issue while maintaining a neutral stance to improve its position on global stage. India would also like to steer the discussion on the issues important to developing nations like inclusive growth, green development, food and energy security etc.
  • PM Narendra Modi addressed the diplomats and pressed that “we should not allow issues that we cannot resolve together to come in the way of those we can.”