G20: India's G20 Presidency

What Is G20?

The G20 (Group of Twenty) is an intergovernmental forum comprising 19 countries and the European union (EU). It works on major issues related to the global economy such as the international financial stability, climate change mitigation,  and sustainable development.

Establishment Of G20: 

(26 September 1999)

• Post World War (WW2): Requirement was felt of world class institutions and initiatives aimed at international coordination of economic policy, which included institutions such as the "Bretton Woods Twins" (ie. IMF & WB, what is now the World Trade Organization). G20 is the latest in such pursuit.

•  Foreshaded at the Cologne Summit of G7 in June 1999.

• Formally established at the G7 Finance Ministers' meeting on 26 September 1999.

• Inaugural meeting in Berlin 15-16 on December 1999.

• First Chairman - Paul Martin ( then Finance Ministers, Canada).

• Upgraded to the level of Heads of State/Government in the wake of the global economic and financial crises of 2007.

• Designated the "Premium Forum Of Economic Corporation" in 2009.

G20 Members:

• (Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, republic of Korea, Russia, Saudi Arabia, South Africa, Turkey, United Kingdom, United States of America, European union).

G20 Guest Members:

• (Bangladesh, Egypt, Mauritius, Netherlands, Nigeria, Oman, Singapore, Spain, UAE).

Invited International Organizations:

Permanent Guest Invitees:

• African Union (AU)

• Association of Southeast Asian Nations (ASEAN)

• Financial Stability Board (FSB)

• Food and Agricultural Organization (FAO)

• International Labour Organisation (ILO)

• International Monetary Fund (IMF)

• Spain

• New Partnership for African Development (AUDA-NEPAD) 

• Organisation for Economic Cooperation and Development (OECD)

•  United Nation (UN)

• World Bank Group (WBG) 

• World Health Organization (WHO)

• World Trade Organisation (WTO)

In addition to regular International Organisations, India as G20 President, will be inviting these organisations also:

• International Solar Alliance (ISA)

• Coalition for Disaster Resilient Infrastructure (CDRI)

• Asian Development Bank (ADB)

Significance of G20:

• G20 holds a significant role in securing future Global Economic Growth and Prosperity.

 • Together, G20 represents:

• 60% of World Population

• 75% of International Trade

• 80% of World GDP

How G20 Works?

• The G20 consists of two parallel tracks: the Finance Track and the Sherpa Track. 

• The G20 Presidency steers the G20 agenda for one year and hosts the Summit. 

• Finance Ministers and Central Bank Governors lead the Finance Track while Sherpas lead the Sherpa Track after Finance Track.

• The G20 process from the Sherpa side is coordinated by the Sherpas of member countries, who are personal emissaries of the Leaders.

• Finance Track is led by Finance Ministers and Central Bank Governors of the member countries. 

• Within the two tracks, there are thematically oriented working groups in which representatives from the relevant ministries of the members as well as from invited/guest countries and various international organisations participate.

• The Finance Track is mainly led by the Ministry of Finance.

• These working groups meet regularly throughout the term of each Presidency. 

• The Sherpas oversee negotiations over the course of the year, discussing agenda items for the Summit and coordinating the substantive work of the G20.

• In addition, there are Engagement Groups which bring together civil societies, parliamentarians, think tanks, women, youth, labour, businesses and researchers of the G20 countries.

• The Group does not have a permanent secretariat.

• The Presidency is supported by the Troika – previous, current and incoming Presidency.

About India's G20 Presidency:

• Began on December 1 2022 till December 2023.

• Theme: 'One Earth, One Family, One Future '

• Sherpa: Former NITI Aayog CEO Amitabh Kant has been picked as India's new Sherpa for the G-20, replacing Piyush Goyal, Minister for Commerce. 

• One Earth: Heal the planet by encouraging sustainable and environment friendly lifestyles based on Indian traditions. 

• One Family: Promote harmony within the human family by depoliticizing pertenent supply chains of food, fertilizers, and medicines. This is done with the aim to prevent humanitarian crisis due to geopolitical tensions.

• One Future: Encourage honest conservations among the most powerful nations of the world regarding core issues of climate change and mitigation of risks posed by weapons of mass destruction to enhance global security. 

 

• During India’s Presidency, the troika will comprise Indonesia, India and Brazil, respectively.

• When it comes to the IMF and World Bank’s shareholding structures, India should use the G20 as a springboard for creative rethinking.

• By creating an alternative financial mechanism to the U.S.-monopolized SWIFT and taking baby moves toward making the rupee more international, India may utilise the platform to push its own agenda and South Asia’s agenda on a global scale.

• India might use the G20 as a stage to exhibit the many facets of its composite culture, helping the world to recognise the country for its cultural wealth and resilience.

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