19/11/2022

Relevance: GS-2: India and its neighborhood- relations; bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.

Key Phrases: Group of 20, Troika, G20 Bali Summit, Joint Declaration 2022, G20 presidency, Members of G20, Global cooperation, Resilient Supply chains.

Context:

• India has assumed the charge of the G20 presidency starting December 1 and the 18th summit will be held in India in 2023.
• When India assumes the presidency next month, it will be part of the Troika with its predecessor Indonesia and successor Brazil.

Why is India's presidency so significant?

• India will join very few developing nations including Mexico, China, Argentina, Saudi Arabia and Indonesia that have assumed presidency of the group since the G20 started its annual apex-level summit.
• India’s presidency is even more special for the fact that for the first time, the ‘Troika’ will comprise only developing nations.
• This will provide it the unique opportunity to look at developments from the perspective of the developing world.
• It will turn the tables on the developed country members that have largely set the tone of discussions at the G20.
• Important issues that the G20 is focused on are likely to be viewed keeping its effect on the poor and the vulnerable strongly in consideration such as-
  • Food security, rising interest rates, indebtedness among some developing countries, the digital economy or climate change etc.

A tough job in challenging times

• Assuming leadership of the G20 at a time when the Russia-Ukraine war is continuing will not be easy for India as it continues-
  • To wreak havoc on the global economy, disrupting supply chains and creating shortages of food and other essentials.
  • The fact that member countries continue to be split over the sanctions to be imposed against Russia, has made the situation more complex.
• However, India stays diplomatically close to the developed countries who are calling for increased action against Russia such as the US, the UK, the EU, Japan and South Korea.
• At the same time while continuing to maintain strong trade ties with Russia, puts it in a unique position of communicating smoothly with both sides.
• India could take advantage of this position of closeness to all sides to bridge the gap to the extent possible and get things done at the G20.

What are the outcomes of G20 Bali Summit?

• The 2022 annual summit of G-20 under the theme ‘Recover Together, Recover Stronger’ was held in Bali, Indonesia.
• The global leaders deliberated on the major global issues and stressed on the need of working together to tackle the challenges; the major outcomes were announced through a joint declaration-
  • Promised to take coordinated action to address food security challenges; applauded the Black Sea grains initiative.
  • Reaffirmed commitment to close the gap in energy access and eradicate energy poverty
  • Welcomed the establishment of the ‘Pandemic Fund’; commitment to strengthen global health governance.
  • Condemned the Ukraine war and stressed the need to uphold international law.
  • Welcomed Crypto-Asset Reporting Framework; call for inclusionary, open, fair, and non-discriminatory digital economy.

India’s focus areas in its presidency

• As the G20 president and part of the `Troika of developing countries’ India is expected to push issues that would positively affect poorer nations.
• It will also focus on areas of immediate concern such as food and energy security and climate.
• It can take a cue from the current presidency of Indonesia who has made a beginning by working in areas such as-
  • Innovation, empowering MSMEs and vulnerable groups, and collaboration between developed and developing countries.
• India’s G20 priorities, as stated by the government of India are-
  • Inclusive, equitable and sustainable growth.
  • Women’s empowerment, digital public infrastructure, and tech-enabled development.
  • Climate financing, global food security and energy security.

Conclusion

• In these testing times of raging inflation which is reeling economies in the aftermath of pandemic and an offensive war coupled with climate crisis; the G20 leadership provides India an opportunity to work in tandem with the other global powers to ensure a more peaceful and prosperous world.
• It requires a strong, sustainable, balanced, and inclusive recovery joint action by the G-20 which is not just limited to securing peace in Ukraine but also a more open, stable, and transparent rules-based trade coupled with resilient global value chains.

Source: The Hindu BL

Mains Question:

Q. The bigger the challenge, the bigger the opportunity for growth. Discuss the statement in light of India assuming the G-20 presidency. How can India use this opportunity to maneuver a strong, sustainable, balanced, and inclusive recovery joint action for a better world? (250 words)