As India marches on towards becoming one of the world's top 3 economies, the G20 presidency has come as a booster for the nation. With a 1.30 crore population and a projected GDP growth of 6.9 percent (22-23) by the world bank, it is critical that India the G20 opportunity to its advantage and also that of the developing world.
What is G20?
The group of 20 (G20) comprises the leading economies of the world: Argentina, Australia, Brazil, Canada, China, the EU, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, UK, and the USA.
Together these countries represent 90 percent of the world's total GDP and 80 percent of global trade. Around 66 percent of the world's population resides in the G20 countries.
With the objective of achieving global economic stability and sustainable growth these top countries come together and form a group known as the G20. To prevent and reduce future financial crises, G20 nations focus on policy coordination and financial regulations. While doing so, the G20 creates international monetary architecture as well.
India has got a chance to lead the group, naturally, is a matter of great prestige.
G20 Objectives: There are a range of areas that the G20 works in. However, its primary objectives are focussed on coordinated and sustained growth and sustainability. These are:
- Global Economic Stability and Sustainable Growth
- Policy Coordination and Financial Regulations
- Prevent and Reduce Future Financial Crises
- Creates International Financial Architecture
When the world rediscovered India as emerging economy
The financial crisis of 2008-09 is still fresh in our memories. Taking it a bit further, in the 1990s, India was not even considered a stable economy. India, as well as a few other countries with large populations, was under-represented at global economic fora.
A key informal dialogue on important issues for global economic stability took place in Berlin, Germany, in 1999. Since then, the central bank governors and finance ministers from advanced and emerging economies have met annually. In 2002, India hosted a meeting of G20 finance ministers and central bank governors. India's economy prowess was increasingly acknowledged by global economic powers during the first term of the Modi government.
Why should we even bother about G20?
The Indian economy and people have matured enough from 1990 to 2022 to understand what an economic power is capable of accomplishing.
The Indian economy has grown to become one of the world's top 5 leading economies under Prime Minister Narendra Modi. Its startup ecosystem is the third largest in the world.
So as a major developing economy, India has a vital stake in the stability of the international economic and financial system. The Sherpas Track and the Financial Track have been critical components of India's involvement in the G20 preparatory process since its inception. Before India took over the presidency of the G20, Prime Minister Modi attended all seven summits.
The government has tried to push the key interest of common citizens in the G20 summit.
Already, to involve the country's youth power, the Modi government has asked startups, entrepreneurs, students, and filmmakers to think and design state-of-the-art digital experiences using the latest emerging technologies ahead of the G20 meetings to be held in cities across India.
Prime Minister Modi's classic style and desire to involve the common people in nation-building have brought G20 topics into public discussion and celebration. This is not just influencing the world but also preparing the future generation of Indians to have a substantial stake in the global economic pie.
India's G-20 moment is the result of past efforts but is looking at the future. It is an indication of the true acceptance of India as an economic power by the entire world. And it is happening under a dispensation that is keenly looking at the prospect of citizens contributing to its efforts. Prime Minister Modi has already made clear that the start-up movement will be one of his focus areas during the presidency.
So, the G-20 moment is a time for celebration, but it is also a time for work in consolidating India's position as a responsible and pro-active global player.