INDIA OFFER DURING ITS PRESIDENCY OF THE G20

• On December 1, India assumed the presidency of the G20 forum. Prime Minister Narendra Modi called it a “huge opportunity for India”. The G20 comprises Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, the Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, the U.K., the U.S. and the European Union.

What is the history of the G20 forum?

• The G20 forum was established in 1999 by the Finance Ministers and central bank governors of seven countries – Canada, France, Germany, Italy, Japan, the U.K., and the U.S. after a meeting in Washington DC.
• The uniting factor was the 1997-98 financial crisis and its aftermath.
• The first meeting of G20 leaders took place in 1999, and it was elevated to the level of heads of government/state in 2008. In 2009, G20 was designated the “premier forum for international economic cooperation”.
• The forum initially dealt with matters related to macroeconomics, but over the years, its agenda has expanded to cover issues relating to trade, climate change, sustainable development, health, agriculture, energy, and environment.
• What does India’s presidency mean?
• The G20 Summit is held annually under a rotating presidency, which rests with India for 2023. The group does not have a permanent secretariat, and the presidency is supported by the previous, current, and future holders of the post, together called the troika.
• Along with India, 2023’s troika includes Indonesia and Brazil.
• As the President-nation, India will host the 18th G20 Heads of State and Government Summit in December 2023 in New Delhi.
• Apart from hosting the summit and setting the theme, the G20 presidency does not come with any formal powers.
• However, India plans on showcasing its philosophies of VasudhaivaKutumbakam (one earth, one family, one future), and LiFE (Lifestyle for Environment) through the theme and the logo of the event. India’s G20 presidency is “striving for just and equitable growth for all in the world, as we navigate through these turbulent times, in a sustainable, holistic, responsible, and inclusive manner,” an official statement said.
• India’s presidency also comes as many countries witness inflation and recession trends, compounded by the Russia-Ukraine war and the standoff between the European Union and Russia.
• India’s own problems with China, also a part of the G20 group, pose a potential issue for the effective functioning of the forum. However, Prime Minister Narendra Modi’s brief interaction with Chinese President Xi Jinping during the G20 Summit in Indonesia in November 2022 has left experts feeling optimistic about the situation.

How does the G20 forum work?

• The processes under G20 are divided into two parallel tracks — the finance track and the sherpa track. The finance track is led by Finance Ministers and central bank governors of member nations, who meet throughout the year. Sherpas, who are personal emissaries of leaders, lead the sherpa track. They oversee negotiations all through the year, discussing agenda items for the summit and coordinating the substantive work of the G20.
• Working groups designed around specific themes operate within both tracks. These include representatives from relevant ministries of member nations and invited/guest countries too.
• Various international organisations such as the United Nations, International Monetary Fund, and the Organisation for Economic Co-operation and Development also participate in working groups.

SOURCE: THE HINDU, THE ECONOMIC TIMES, PIB