The Group of Twenty (G20) remains the most influential global economic governance forum. To achieve robust global economic growth, certain nations comprising of and contributing to more than 80 per cent of global GDP gathered at the Premier Forum for International Economic Cooperation upon agreement by leaders during the Pittsburgh Summit in September 2009. These nations worked together to hold the "Summit on Financial Markets and the World Economy," which is now known as the G20 Summit. Gradually, G20 summits have begun to focus not only on macroeconomics and commerce but also on a wide variety of global concerns that significantly influence the worldwide economy as globalisation has progressed and numerous challenges have become more intricately interconnected. These challenges include general development, climate change and energy, health, counter-terrorism, migration and refugees.
Every year, the G20 rotates the presidency, enabling each member nation to define the course of global economic policy during their leadership. In December 2021, India joined the G20 Troika of rotating presidency with Italy and Indonesia in preparation for its leadership. India is now set to chair the G20 nations beginning December 2022 and is seeking areas of collaboration with other G20 countries to frame its chairmanship.
In place of India's presidency in G20, International Monetary Fund (IMF) Managing Director Kristalina Georgieva said "As the chair of the powerful grouping of G-20 countries next year, India has a unique role to play to overcome global challenges by reaching out to different parts of the world using its long tradition of being inclusive and open to collaborating with all countries."
While most nations' economic activity has yet to recover to pre-pandemic levels, India has shown significant development, with a growth rate of 8.9 per cent in 2021. It has come up to rank-46 on the Global Innovation Index. India has achieved unprecedented success in various fields, including industry, infrastructure, science and technology, imports and exports, energy, transportation, defence, and education as a developing country. Along with structural changes, the country's macroeconomic stability has improved, with India on track to become a $ 10 trillion economies by 2030. The Prime Minister's Gati Shakti initiatives play a tremendous role in this. It aims to promote inclusive development, productivity enhancement and investment, sunrise opportunities, energy transition, climate action and financing of investments.
Development in India in recent years can be attributed to the increased adoption of technology and digitalisation across sectors. Digitalisation during the pandemic has resulted in the digitisation of financial systems in India, including banks, as individuals have moved to online banking. There has also been a growth in the volume and value of digital transactions via modes of payment like Unified Payments Interface (UPI) and Bharat Interface for Money (BHIM), leading to a boom in e-commerce industry, making India the fastest-growing e-commerce market with 63 per cent CAGR. This has aided social and financial inclusion in India as people living in different parts of the country can now access the same services irrespective of their socio-economic backgrounds. Furthermore, in recent years, India has also expanded its global character by reaffirming its commitment to building a zero-carbon economy and advancing Sustainable Development Goals (SDG). In India, a significant policy shift towards sustainable cities, bio-fuel, infrastructure, finance, sustainable agriculture, and research and development across areas. This has resulted in a massive transformation in the Indian economy by adopting clean technology and practices and generating renewable energy and power. India has become the 4th and 5th largest globally for wind and solar energy. In the past few, a surge in the use of Electric Vehicles (EVs) and the setting up of EV infrastructure has also taken place.
There is widespread concern among developing countries that they cannot lift people out of poverty, revitalise the economy, and achieve true global collaboration. Because of India's achievements as a developing country, there is optimism that India may assist other developing countries in their quest to use the G-20 as a forum for global collaboration and support the existing multilateral system. As a result, India must chair the G-20 next year at this critical juncture to address shared goals such as climate change while also assisting the most vulnerable nations on their development journey.
This article is co-authored by Bhakti Jain and Bhamini Rathore.
