G20 and India
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G20: a backgrounder
As in 2018
December 3, 2018: The Times of India
From: December 3, 2018: The Times of India
G20’s role in the global order
From: December 3, 2018: The Times of India
What’s G20’s role in the global order?
Founded in 1999, initially G20 or the Group of Twenty was a forum of Finance Ministers and Central Bank Governors of industrialized and developing economies to discuss key issues in the global economy. The group has expanded its agenda since 2008 and head of government and states along with their finance and foreign ministers often meet at the summits
Who constitutes the G20?
Although the group has 19 of the world’s largest economies as its members but it asserts of not having any formal criteria for membership. Apart from the G7 industrialised nations G20 also includes emerging economies. The 20th member is the European Union, which is represented by whichever country holds the EU presidency. The IMF and the World Bank also attend G20 meetings. The group had its first meeting in 1999 and the chairmanship rotates every year.
How big is the G20?
The G20 countries comprise an overwhelming chunk of global GDP, population and trade.
What does it do?
The official website states that the G20 convenes its members, guests countries, international organisations and engagement groups for dialogue on global affairs. Over many specialised meetings, which focus on a variety of issues, it builds consensus to develop global policies that address the challenges faced by humanity.
What have been its major achievements?
Major achievements of the G20 include quick deployment of emergency funding during the 2008 global financial crisis. It also works for reforms in international financial institutions by improving oversight of national financial institutions. Over the past few years G20 has also become a platform to discuss nearly all issues that affects the world.
What do the critics say?
The exclusivity of its membership has attracted criticism. The group represents a massive share of global economy and its decisions can impact non-member countries. Critics also point at disproportionate representation of African countries. In 2010, Norwegian foreign minister called the G20 “one of the greatest setbacks since the World War II”.
Trade:India and the G20
Jan 31 2015
Trading Places
The G-20 is a group of the world's 19 major economies and the European Union. Together, they account for about 80% of world trade. A comparison of exports from these economies shows that between 2002 and 2013, the compound annual growth rate (CAGR) of merchandise exports from India was 18.3%, second only to China, whose exports grew at 19% annually. Despite this, India's exports were only 1.7% of global exports, against 12% for China, which has the highest share. The US and Germany's shares were 8.6% and 7.9% respectively, second and third highest though the EU's share as a block was more.
Summit in India: 2023
Consensus
Surojit Gupta & Sidhartha TNN, Sep 10, 2023: The Times of India
New Delhi : India on Saturday scripted history and stamped its authority on the global stage, securing a consensus on more than 100 issues on the agenda, including the most contentious one, the Russia-Ukraine war, as G20 leaders adopted the New Delhi Leaders’ Declaration. “United in consensus and spirit, we pledge to work collaboratively for a better, more prosperous and harmonious future. My gratitude to all fellow G20 members for their support and cooperation,” PM Modi said in a post after the 34-page declaration was adopted following what India’s sherpa Amitabh Kant said were “tense, ruthless negotiations” for over 200 hours. Modi’s assertion that “this is not the era of war”, which was echoed by the Bali Declaration, was part of this declaration as well. The breakthrough was facilitated by India’s success in enlisting the support of the emerging economies of Brazil, South Africa and Indonesia, and after it invoked the name of PM Modi to bluntly put across the message that there was no more time to be wasted. “Eventually, we had to tell them that our leader wants it, and it has to be delivered,” Kant said. The significance of the declaration stretched far beyond getting the opposite sides to agree to a compromise formulation over Ukraine. It attested to India’s growing geopolitical heft, with the nations embracing the priorities flagged by Modi. India’s G20 sherpa coun ted multiple gains for the members — an ambitious green development agenda, including a cut in emissions and a jump in finance, and accelerating progress on sustainable development goals through focus on health and education. In short, a rich trophy cabinet.
Respite for Russia in compromise
Sachin Parashar, Sep 10, 2023: The Times of India
The New Delhi Declaration avoided any mention of Russia on the Ukraine war, except in the context of efforts to revive the Black Sea grain deal.
New Delhi : The spirit of compromise that the US spoke of before the G20 summit seemed to have prevailed on Saturday with the West agreeing to a compromise language on Ukraine that focused on the social consequences of the war rather than any effort to hold Russia accountable for its actions. The unanimously-adopted New Delhi Leaders’ Declaration dropped words from the 2022 Bali Declaration that had condemned the Russian “aggression’’ against Ukraine, and avoided any mention of Russia, except in the context of efforts to revive the Black Sea Grain Initiative that the latter has abandoned. The consensus on Ukraine was surprising after the G7/EU and Russia-China combines had taken maximalist positions on the war in the G20 Sherpa talks that lasted for weeks. US President Joe Biden’s appreciation of important outcomes under India’s presidency in ameeting with PM Narendra Modi and his remark about using these outcomes to, among other things, build a global consensus around inclusive economic issues was seen as a signal to the West about the importance of reaching a joint declaration at the summit.
The Ukraine foreign ministry reacted to the declaration, which like the Bali declaration cites Modi’s remark that this isn’t the era of war, saying the G20 had “nothing to be proud of”.
Ukraine wanted the war referred to as “against Ukraine” and not, as the declaration said, “war in Ukraine’’.
Endorsing the joint declaration, Russian G20 sherpa Svetlana Lukash said the situation was now reflected in a balanced form and that the “collective support’’ of Brics countries worked in its favour.
French diplomatic sources, however, strongly defended the joint declaration. “The statement says that all states must refrain from conquering territories by force. Russia is the only country to have done so,’’ a French source said. US NSA Jake Sullivan said the declaration did a “very good job of standing up for the principle that states cannot use force to seek territorial acquisition”.
The New Delhi Declaration, which had as many as seven paragraphs on Ukraine against the two in Bali, also omitted the text from the previous G20 declaration regarding the demand for complete and unconditional withdrawal of Russia from Ukraine.
China is learnt to have joined Russia in resisting any attempt to blame Moscow alone for the war.
Western and Japanese sources, however, highlighted a new Ukraine-related text that said all states must refrain from the threat or use of force to seek “territorial acquisition against the territorial integrity and sovereignty or political independence of any state’’. While the declaration also said the use or threat of use of nuclear weapons was inadmissible, it again did not name Russia.
“We call on all states to uphold the principles of international law, including territorial integrity and sovereignty, international humanitarian law and the multilateral system that safeguards peace and stability,’’ the New Delhi Declaration said while highlighting the human suffering and negative impact of the war on global food and energy security.
Emphasising the importance of sustaining food and energy security, the declaration called for the cessation of military destruction or other attacks on relevant infrastructure. “We also expressed deep concern about the adverse impact that conflicts have on the security of civilians, thereby exacerbating existing socioeconomic fragilities and vulnerabilities and hindering an effective humanitarian response,’’ it said.
Nod to rapid, deep emission cuts
Vishwa Mohan, Sep 10, 2023: The Times of India
From: Vishwa Mohan, Sep 10, 2023: The Times of India
G20 leaders agreed on rapid, deep and sustained cuts in GHG emissions by 43% by 2030, and sought to raise trillions of dollars to achieve the target.
New Delhi : A consensus on climate issues might be one of the significant outcomes of the G20 summit as leaders on Saturday agreed to work towards limiting global warming to 1.5 degrees Celsius through rapid, deep and sustained reductions in global greenhouse gas (GHG) emissions. The goal is to reduce GHG emissions by 43% (relative to the 2019 levels) by 2030, and achieve ‘net zero’ by 2050. The leaders also vowed to triple renewable energy capacity globally by 2030.
These targets are important to save the world from the dangerous consequences of climate change, such as extreme weather events, biodiversity loss and desertification.
The G20 New Delhi Declaration backed up the promise by noting the need to mobilise $5.8 trillion-5.9 trillion from all sources by 2030 for developing countries to implement their nationally determined contributions (NDCs). To implement clean energy technologies by 2030 and reach net-zero emissions by 2050, $4 trillion will be needed per year.
The declaration did not commit to a phase-out of all polluting fossil fuels, including oil and gas. On coal, it merely repeated the text from the last G20 summit about accelerating efforts for phasing out unabated coal power, in line with national circumstances.
Though the declaration recognises that GHG emissions must peak by 2025 to stick to the 1.5 degrees Celsius goal, it does not imply all countries will peak within this timeframe. Rather, countries will peak in line with their different national circumstances. This formulation suits developing countries like India that need more energy to achieve their developmental goals.
Under the ‘Green Development Pact for a Sustainable Future’, the leaders promised to pursue efforts to triple renewable energy capacity globally through existing targets and policies, as well as demonstrate similar ambition with re spect to other zeroand lowemission technologies, including abatement and removal technologies, in line with national circumstances by 2030.
This promise matters as G20 countries are collectively responsible for 80% of GHG emissions. Deep cuts at their end could help limit global warming to 1.5 degrees Celsius above the pre-industrial levels by 2100. Already, the world has reached an average warming level of 1.1 degrees C.
The other significant point for India is the inclusion of its brainchild LiFE—lifestyle for sustainable development—in the preamble of the declaration, recognising it as an im portant tool to address development and climate challenges, and conserve biodiversity, forests and oceans.
The declaration noted that LiFE could contribute to significant emission reduction by 2030. Besides, it introduced an additional element—“Travel for LiFE”—that will support the development of smart destinations that are responsible and sustainable.
This year could also see the first-ever $100-billion contribution to the Green Climate Fund from developed countries—a goal they had committed to meet by 2020. The money will help developing countries implement their NDCs.
India – Middle East – Europe economic corridor
Sep 10, 2023: The Times of India
New Delhi : India, along with the US, EU, Saudi Arabia and UAE, clinched a deal Saturday to set up the India-Middle East-Europe Economic Corridor (IMEE EC) that will provide faster and cheaper sea and rail transit option to west Asia and Europe and is seen as a counter to China’s One Belt One Road (OBOR) initiative,reports Dipak Dash.
Announcing the “historic partnership”, for which a memorandum of understanding was signed on the sidelines of the G20 Summit, Modi said in times to come, this would be come an “effective medium for economic integration of India, west Asia and Europe”.
Details
Dipak Dash, Sep 10, 2023: The Times of India
New Delhi : Praising PM Modi for helping clinch a deal to set up a trade corridor linking India with west Asia and Europe, US President Joe Biden said the proposed partnership was in sync with the current G20’s theme of One Earth, One Future.
“This is a real big deal. I want to thank the PM (Modi). One Earth, One Family, One Future — that’s the focus of this G20 Summit. And in many ways, it’s also the focus of this partnership that we’re talking about today. Building sustainable, resilient infrastructure, making quality infrastructure investments and creating a better future... As we work to address infrastructure gaps across low-middle-income countries, we need to maximise the intensity of our investments,” US President Joe Biden said. Analysts were quick to term the proposed agreement as a “new spice route”, referring to the ancient trade corridor between the Indian subcontinent and Europe.
The project will comprise two corridors — East-West, connecting India to West Asia, and the Northern corridor from West Asia to Europe. The idea is to link IMEE EC to southeast Asia, and leverage some of the building blocks on trade. While India already has a trade agreement with Asean and the UAE, it is exploring separate treaties with the EU, the UK and the Gulf Cooperation Council that includes Saudi Arabia and Kuwait, among oth er countries in theregion.
While the details are yet to be worked out, the project could entail Dubai port being the primary link between India and the UAE. The port is expected to be the starting point for the rail link, connecting the UAE to Saudi Arabia, Turkey, Israel andEurope. Besides, it is expected to act a catalyst for further investment, including from cash-rich companies and funds in Saudi Arabia and the UAE.
The rail and shipping corridor is part of the Partnership for Global Infrastructure Investment (PGII), a collaborative effort by G7 countries to fund infrastructure projects in lowand middle-income nations. PGII is considered as the bloc’s counter to the OBOR, which has imposed a heavy debt burden on countries from Mongolia and Pakistan to Kenya and Zambia.
US Secretary of State Antony Blinken tweets, “Today, US President and PM Narendra Modi co-hosted leaders at the G20 Summit Delhi to boost investments in high-quality infrastructure through the Partnership for Global Infrastructure and Investment (PGI). US PGI is committed to mobilizing $200 billion for developing countries by 2027.”
“While expanding connectivity, it is important to ensue that connectivity initiatives are consultative, transparent and participatory with respect for sovereignty and territorial integrity of all countries. Principles of financial responsibility and economic viability to avoid creation of unsustainable debt burden to recipients and conforming to ecological and environmental standards must be followed,” a government official said. Officials said the deal will reduce shipping time and cost, making trade cheaper and faster. “Our main focus is to improve connectivity among regions, and we believe connectivity among various countries is not only for increasing trade but also trust. While promoting any connectivity initiative, it’s important to follow fundamental principles such as international norms, rules and following the laws, respecting the sovereignty of every country and integrity of all regions, promoting financial viability instead of increasing burden of debt and following all environment rules,” the PMsaid.
African Union joins G 20
Sep 10, 2023: The Times of India
New Delhi : In a landmark achievement for India’s G20 presidency, the 55-country African Union (AU) got a permanent seat at the G20 high table with PM Modi announcing this in his opening remarks at the leaders’ summit on Saturday, reports Sachin Parashar. “It was in the spirit of ‘Sabka Saath’ that India proposed permanent membership for AU. I believe we all agree on this,” Modi said as he invited AU chair and Comoros President Azali Assoumani.
Details
Sachin Parashar, Sep 10, 2023: The Times of India
New Delhi : Foreign minister S Jaishankar escorted African Union chair and Comoros President Azali Assoumani to his seat at the G20 summit after PM Modi brought the ceremonial gavel down to invite AU to the premier forum for global economic cooperation.
Amid the gloom of the Ukraine war, and its restraining effects on India’s presidency, Modi had written to all G20 leaders in June seeking permanent membership for the 55-member continental group that is home to some of the fastest growing economies in the world and has a combined GDP of $2.4 trillion.
Jaishankar later said it was a matter of particular satisfaction that the AU had become a member of G20 under India’s presidency. “It’s in line with our priority to address the concerns of the Global South,” he said.
As a resource-rich continent with 1.3 billion people and a youthful demographic, Africa has been keen to play a more significant role in international affairs. The AU is the second regional group, after the EU, to join G20. Only South Africa was a member of G20 so far. While a formal proposal from the AU for membership came only last year, African countries had been advocating for G20 inclusion for the past seven years.
According to Indian authorities, Modi himself led from the front for AU membership as he believed this would be a step towards a “just, fair, more inclusive and representative global architecture and governance’’.
“Prime Minister is a strong believer in having a greater Voice of the Global South countries on international platforms, particularly African countries. As part of India’s G20 presidency, he has particularly focused on incorporating the priorities of African countries in the G20 agenda,” an Indian official had said earlier.
“This is the first step towards the kind of reforms we would like to see in various global multilateral platforms, including the UNSC…,” said Vincent Magwenya, spokesperson of South African President Cyril Ramaphosa. He added that India had done extremely well, not just in terms of organising the summit but also focusing it on the voice of the Gobal South.
The main commitments
Sep 10, 2023: The Times of India
From: Sep 10, 2023: The Times of India
From a LiFE strategy to tackle climate change to reforms for multilateral development banks, giving more voice to the developing world in global affairs and underlining the importance of research on long Covid, a look at the key takeaways from the New Delhi Declaration
