India holds the Presidency of the G20 from 1 December 2022 to 30 November 2023. The theme of India's G20 Presidency is - "VasudhaivaKutumbakam" or "One Earth . One Family . One Future"
As the largest democracy in the world, and the fastest growing economy, India’s G20 presidency will play a crucial role in building upon the significant achievements of the previous 17 presidencies. For India, the G20 Presidency also marks the beginning of “Amrit Kaal”, the 25-year period beginning from the 75th anniversary of its independence on 15 August 2022, leading up to the centenary of its independence, towards a futuristic, prosperous, inclusive and developed society, distinguished by a human-centric approach at its core. This offers a unique opportunity for India to contribute to the global agenda on pressing issues of international importance.
Logo and theme
Vasudhaiva Kutumbakam, which translates to "One Earth, One Family, One Future," is the theme of India's G20 presidency. It is inspired from the Maha Upanishad, an old Sanskrit scripture. The theme fundamentally highlights the importance of all life—human, animal, plant, and microorganism—as well as their interdependence on Earth and across the universe. The theme also exemplifies LiFE (Lifestyle for Environment), which highlights the importance of environmentally sustainable and responsible lifestyle choices, both at the individual and national level, in creating a cleaner, greener, and bluer future.
India’s G20 chairmanship theme of “One Earth, One Family, One Future” will be reflected in its inclusive, ambitious, definite, and action-oriented presidency. “Vasudhaiva Kutumba-Kam,” or “One Earth, One Family, One Future,” is the focus of India’s G20 Presidency. India will work to ensure that there is “just one world,” not a “first world or third world.” The G20 Theme embodies India’s efforts to realize its vision of uniting the entire world in pursuit of a common goal and a better future.
INDIA'S G20 PRIORITIES?
India kick-started its presidency term agenda with a series of cultural initiatives that included various Jan Bhagidari activities, a special University Connect event with 75 educational institutions from across the country, the lighting up of 100 ASI monuments with the G20 logo and colours, and showcasing G20 at the Hombill festival in Nagaland. Sand artist Shri Sudarshan Pattnaik also created sand art of India's G20 logo on Puri beach in Odisha. Various other events, youth activities, cultural performances, and site excursions showcasing the sights and traditions of respective city-venues, are also planned throughout the year-long calendar.
1. Green Development, Climate Finance & LiFE
India's focus on climate change, with a particular emphasis on climate finance and technology, as well as ensuring just energy transitions for developing countries. Introduction of the LiFE movement, which promotes environmentally-conscious practices and is based on India's sustainable traditions.
2. Accelerated, Inclusive & Resilient Growth
Focus on areas that have the potential to bring structural transformation, including supporting small and medium-sized enterprises in global trade, promoting labour rights and welfare, addressing the global skills gap, and building inclusive agricultural value chains and food systems.
3. Accelerating Progress on SDGs
Recommitment to achieving the targets set out in the 2030 Agenda for Sustainable Development, with a particular focus on addressing the impact of the COVID-19 pandemic.
4. Technological Transformation & Digital Public Infrastructure
Promotion of a human-centric approach to technology and increased knowledge-sharing in areas such as digital public infrastructure, financial inclusion, and tech-enabled development in sectors such as agriculture and education.
5. Multilateral Institutions for the 21st Century
Efforts to reform multilateralism and create a more accountable, inclusive, and representative international system that is fit for addressing 21st century challenges.
6. Women-led Development
Emphasis on inclusive growth and development, with a focus on women empowerment and representation in order to boost socio-economic development and the achievement of SDGs.
Significance of India’s G20 Presidency
G20 is the premier forum for international economic cooperation representing around 85% of the global GDP, over 75% of the global trade, and about two-thirds of the world population.
During the course of its G20 Presidency, India hosts about 200 meetings in 32 different sectors in multiple locations across India. The G20 Leaders’ Summit at the level of Heads of State/Government is scheduled to be held on September 9 and 10, 2023 in New Delhi. This term can be an opportunity for India to share its expertise with the world in areas of women empowerment, democracy and digital technologies. As a country with core democratic values, India can show the world that the scope of conflict can come to an end when democracy becomes a culture. This gains significance amidst the ongoing Russia-Ukraine conflict.
India’s foreign policy is focusing on the ‘global common good’. Through its G20 leadership, India hopes to extend this principle towards finding sustainable solutions to some of the key global challenges emerging out of the interconnectedness of the world, such as climate change, new and emerging technologies, food and energy security, etc. During India’s Presidency, Indonesia and Brazil along with India would form the G20 Troika. This would be the first time when the Troika would consist of three developing countries and emerging economies.
It is hoped that as a result there would be a shift in the balance of power within the G20 favoring emerging economies to have a greater share in decision-making at this grouping. The G-20 Presidency presents a great opportunity for India to correct the long-standing anomalies that go against developing countries, especially in the domain of agriculture and food subsidies.
Recently G20 summits started focusing not only on macro economy and trade; but also on a wide range of global issues that have an immense impact on the global economy since globalization started progressing and various issues became more intricately intertwined. Those issues included overall development, climate change and energy, health, counter-terrorism, as well as migration and refugees.
The G20 has sought to realize an inclusive and sustainable world through its contributions towards resolving these global issues.
The importance of India holding the 2023 Summit
India’s G20 Presidency is a special opportunity for India to contribute to the global agenda on urgent issues of global significance. The first step toward a new world order for the post-Covid age was to build an international agreement on reforming multilateral organizations like the UN. It is an opportunity to take on the role of Global South leader. The increasing importance of G20 in a world where issues like global warming, the COVID-19 pandemic and the conflict in Ukraine are pressing issues.
Challenges For G20 Countries
Rising Geopolitical Rifts
The global economy is having trouble coping with rising geopolitical rifts like the conflict between the world’s two largest economies, the US and China, or the drop in trade between the UK and the euro area following the Brexit vote.
Slow Down Of Major Economies
China, one of the main drivers of the global economy, is currently experiencing a severe slowdown as a result of its ongoing real estate crisis.
Expected Recession
While some of the world’s largest economies, including the US and the UK, are expected to experience a recession, others, like countries in the euro area, are more likely to experience a slowdown or even a standstill.
Persistent High Inflation
Consistently rising inflation, which is reaching historic highs in a number of countries, has reduced purchasing power globally, slowing down economic growth. Impact of Russia’s Invasion of Ukraine: In addition to greatly increasing geopolitical ambiguity, Russia’s invasion of Ukraine has also significantly increased worldwide inflation. The associated Western sanctions have made the situation worse. Read in detail about the Russia-Ukraine Conflict in the linked article.
Impact of Rising Inflation
Central banks around the world have hiked interest rates in response to the high inflation, which has further slowed down economic activity.
Challenges
G20’s credibility has taken a hit in the last few months due to an internal rift over the Russia-Ukraine conflict. As India takes on its presidency, it has to address these differences find innovative solutions, and build bridges. India has to chalk out an agenda that has the consensus of all the members. Internal governance reform is needed to give thrust to inclusiveness and unity. India has to work with developed countries with respect to climate financing. The developed countries have to be nudged for the transfer of clean technologies and renewable energies to medium and low-income countries.
Amongst the many impacts of the pandemic, a major long-term impact is increasing global public debt and inflation. The global public debt has reached an unprecedented high of 256 percent of the GDP. Global lockdowns led to supply chain disruptions; this coupled with relief funds from governments induced demand spikes resulting in inflationary pressures.
The Ukraine war and the resultant supply chain disruptions have further added to the inflation. High public debt and inflation are two major deterrents to any economy, pushing the country into stagflation, increasing the risk of a sovereign debt crisis, and unemployment, and decreasing the ability to respond to shocks. India in its G20 presidency has a colossal balancing role to play. India’s priority areas include tackling ballooning public debt, rising inflation, carrying forward the ongoing Indonesian agenda towards health, digital transformation, green transition, and overall macroeconomic coordination.
India has to chalk out a roadmap to deal with the situation by teaming up with the International Monetary Fund (IMF), the Organisation for Economic Co-operation and Development (OECD), the World Trade Organisation (WTO), and the Financial Stability Board. Other challenges include taking measures to ensure global food security and a clear-cut G20 policy on the Russia-Ukraine war. At a time when there are mounting calls to expel Russia from the forum, India has to talk tough on a “code of conduct” for all G20 members and see to it that it is enforced.
G20 and Climate Change
The G20 economies are responsible for nearly 75 percent of global greenhouse gas emissions and they derive 82 percent of their total energy supply from coal, oil and gas. Many G20 countries are also significant producers of fossil fuels.
Therefore, the group member's commitments and compliance are critical to achieving global climate commitments. Climate plays an important role in the both Finance and Sherpa track of the G20. The Group has frequently reiterated the timely implementation of international climate agreements and commitments. The G20 Presidency would place India on the global stage, providing an opportunity to place its priorities and narratives on the global agenda. India can showcase its leadership, among other areas, in climate action and climate commitments, in which the country made significant progress.
Conclusion
India’s G20 presidency comes at a critical stage in global affairs. The macroeconomic challenges in the form of rising debt, inflationary pressures, and challenges due to the Russia-Ukraine war have emerged. India has a vital role to play in addressing these challenges as a country highly committed to multilateralism and an advocate of inclusiveness and equity in the global governance system. The purpose of establishing G20 is to create an atmosphere that supports equitable global growth and development. They bring together the most powerful economies in the world, both developed and emerging, to talk about global financial and economic stability. However, the way forward to tackle the present situation is:
Governments must find measures to assist the vulnerable without necessarily increasing debt levels. The need to closely monitor external risks would be a major issue in this regard. The G20 leaders must advocate for “more open, stable, and transparent rules-based commerce” in order to alleviate the world’s supply shortages. Increasing the global value chains’ resilience would assist safeguard against upcoming shocks.
Keeping the blazing inflation under control is the G-20’s top priority. A strong, sustained, balanced, and inclusive recovery necessitates G-20 cooperation, and this cooperation necessitates not only maintaining peace in Ukraine but also “helping prevent future division”.
As it takes the G20 Presidency, India is on a mission to bring about a shared global future for all through the Amrit Kaal initiative with a focus on the LiFE movement which aims to promote environmentally-conscious practices and a sustainable way of living. With a clear plan and a development-oriented approach, India aims to promote a rules-based order, peace and just growth for all. The 200+ events planned in the run up to the 2023 Summit will strengthen India’s agenda and the six thematic priorities of India’s G20 presidency.
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