India is the Bridge That Connects the World

  • India is soon going to conduct the G -20 summit with the vision of inclusive, ambitious, decisive and action-oriented while promoting nation’s deep commitment to democracy and multilateralism.
  • The G20 is built on tenets such as collective action and inclusive partnership between developed and emerging economies. And India at the helm of the intergovernmental forum is truly a watershed moment for finding pragmatic global solutions for the well-being of all.

Importance of G20

  • A platform for inclusive promotion and development of Indian rich heritage and economy.
  • Under India’s G20 presidency, a new group called the Startup20 Engagement Group will be established for the very first time. This is in recognition of the role that startups play in driving innovation that is a response to a rapidly changing global scenario.
  • It further strengthens the inclusive growth.
  • This will enable G20 delegates and guests to get a glimpse of India’s rich cultural heritage and will help these cities with
    • infrastructure development,
    • women’s empowerment,
    • fostering a startup ecosystem,
    • promoting trade and investment, and
    • fuelling tourism
  • The ongoing discussions and outcomes during this period will become global markers to measure progress in critical priority areas under a clear framework

India’s voice for inclusivity

  • The key focus area at the G20 is the growth of digital infrastructure
  • India, with its various initiatives, has unlocked the potential to overcome the imbalance between different cohorts of the population and enable inclusive growth.
  • The Unified Payments Interface (UPI), which has witnessed a 58 per cent year-on-year volume growth this year, is an excellent example of India’s digital infrastructural success.
  • The emphasis on the nation’s experience in digital public infrastructure in unlocking inclusive growth can be positioned as a global solution for other emerging economies.

G20

  • An unofficial organization that currently consists of 19 nations, the European Union, and representatives from the World Bank and the International Monetary Fund.
  • Contains both developed and developing economies; accounts for more than two-thirds of the world’s population, 85 percent of global GDP, 80 percent of global investment, and more than 75 percent of global commerce.

  • Origin

    • ASIAN Financial Crisis, 1997-1999: This was a ministerial-level conference that arose when the G7 asked both rich and developing economies to participate.
    • The first conference of finance ministers and central bank governors took place in 1999.
    • During the 2008 financial crisis, the world recognized the need for a new level of political agreement. It was determined that the G20 leaders will meet once a year from now on.
    • In order to assist in preparation for these summits, the finance ministers and governors of the central banks of the G20 continue to get together on their own twice a year.
    • They meet at the same time as the World Bank and the International Monetary Fund.

  •  Members

      • The European Union, Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, the United Kingdom, and the United States of America are all members of this organization.
      • The global financial crisis that began in 2008 wreaked havoc on the Spanish economy and plunged the country into a financial crisis that would last for the next six years. Since then, Spain has been invited to participate in leader summits despite not being a member of the organization.

Global governance and G-20

  • Financial institutions play a key role in further enhancing India’s digital growth. The impact of digital initiatives has been profound, and these initiatives have enabled citizen engagement, providing convenient digital services across the nation
  • Digital pathways have enabled a smooth provision of essential services, driven economic growth, and fostered a more inclusive digital economy.
  • Suitable models of governance and regulation are needed to ensure that everyone can reap the benefits of a data-driven economy.
  • Indian can share its technology and vision with other developing and least developed nation to promote the global governance

Bringing reform in multilateral financial institutions

  • Furthermore, multilateral financial institutions should be reformed to ensure that finance is accessible to those in need.
  • The G20 nations are looking to enhance the agility of multilateral development banks (MDBs) for tackling 21st-century challenges and ensuring prompt resolution of debt and debt-related matters.
  • Another critical step will be to establish a global regulatory framework for crypto assets beyond central bank jurisdiction.

Addressing the issue of climate change and its impact

  • Climate change is causing natural disasters on a gigantic scale. This has disrupted human life and the biodiversity of our planet.
  • It is now time for India to lead the world on sustainability. Our traditional ways of living in balance with the environment have much to teach the modern world.
  • Therefore, The priority must be to focus on building cities for tomorrow, climate-resilient infrastructure, new methods of growing food and new economic systems that balance growth and sustainability.

Way forward

  • India can use its strengths in technology and an intrinsic understanding of digital innovation and circularity to show what a sustainability-first economy really looks like.
  • Artificial intelligence and different tenets of sustainability can both be harnessed for a greener and yet more prosperous India.
  • Global Value Chains (GVCs) are one of the key drivers of sustainable growth, jobs and living standards and Low-carbon manufacturing is now becoming a competitive advantage.
  • As India has always excelled in frugal innovation, and our vast pool of skilled resources has the potential to address such new areas of economy.
  • Top Indian companies have already started looking deeply at net zero targets in the context of India’s ambition to be net zero by 2070.
  • At the same time, India’s vast MSME sector, in which the country’s vast population works, needs support.
  • We must be cognisant of the fact that creating a low-carbon economy needs people and skills; mandating climate legislation can impact livelihoods at scale.

Conclusion

  • Therefore, India’s G20 Presidency aims to strive for just and equitable growth for all in the world, navigating through turbulent times, in a sustainable, holistic, responsible, and inclusive manner.
  • The challenge ahead is to adopt a unique approach of living in harmony with the surrounding ecosystem and foster the true spirit of “vasudhaiva kutumbakam” (One earth, one family, one future).