In December 2022, India inaugurated its year-long presidency for the G20 Summit to be held in 2023. This handover was done from Indonesia after the pandemic globally created a turbulent geopolitical situation.
Before we dive into the implications of the G20 Summit 2023 in India, let us first learn the what and how’s of the Group of 20 (G20).
What is G20?
In the late 1920s, a massive tide of inflation shot through and the world was on the brink of an economic collapse. The financial crisis almost swept South Asia and few countries came together to form a forum of Finance Ministers and the Central Bank Governors. In 2007, this protocol of membership was further revised to include Heads of State and Governments.
Few Facts around G20
In the 2023 Summit, there are 20 members in the group namely (in a alphabetical order), Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, South Korea, Japan, Mexico, Russia, Saudi Arabia, South Africa, Turkey, the United Kingdom, the United States, and the European Union.
G20 as a group has performed very well in previous occasions in ensuring financial stability, international tax relaxation, debt-clearance for countries, peace management & economic restoration during and after the 2008 global economic crises.
- The Group is held by 19 countries currently and it represents around 85% of the world’s GDP.
- The G20 is formally held by member countries but often non-member countries are invited to the summit. Few countries that have been a part of the previous summits are Bangladesh, Nigeria, Singapore and Spain.
- International Organisations like the UN, WHO, World Bank are also a part of the Summit from time to time.
- In 2023, 30 delegates will attend the Summit, both members and non-member states.
How does the G20 Presidency work? (which India has assumed for 2022-2023)
Like many other international Forums, the G20 does not have a permanent Secretariat. Every year a member country hosts the Summit and takes charge for navigating the group’s imminent agendas. There are two courses of these meetings- one is undertaken by the Finance Ministers of member states and the other is led by delegates of the leaders of member countries.
After 2023, Brazil is set to take over the presidency of G20. Australia will assume the G20 Presidency in 2025. There are more than 200 meetings scheduled in the 2023 Presidency which ranges across 50 cities, covering all states and Union Territories of India. These meetings will finally lead to the pivotal presidency summit in September 2023, New Delhi.
Agenda for G20 Summit 2023, India
“Climate Change, Terrorirsm, Pandemics can be solved not by fighting each other but only by acting together.”
- PM Narendra Modi, India. (In a statement made on 01st Dec upon commencement of India’s Presidency over the G20 Summit, 2023) (Source: PIB)
A reflection from the global crises led by the pandemic and the Ukraine War, it is imperative that leaders of various countries come together and resolve issues that affect all the nation-states through dialogue and diplomacy.
There is also a need to “depoliticize the global supply of food, fertilisers, and medical products so that the geopolitical tensions do not lead to humanitarian crises.”
- PM, Narendra Modi (Source: The Hindu)
What does the G20 Summit mean for Businesses?
“This is a moment for India to transition from being a rule-taker to being a rule-maker..The country has not invested much in multilateral rule-making institutions like the G20, but it is never too late to start.”
Rajiv Bhatia and Manjeet Kripalani, Gateway House. (Source: Reuters)
This strategic multilateral platform is going to be one of the most important sites for trading & economic discussions. G20 covers around 85% of global GDP, 75% of global trade, and 65% of the world’s population. Diversity being the prime aesthetic match for this Summit and the ones to come, Sustainability and ESG-led responsible trading is going to be a showstopper in the economic discussions underpinned with climate change. This would mean that more compulsions are incoming on Carbon Disclosures and Import-Export Carbon Certifications. If you are a business, well, it is time to take the seat in the front and set your Sustainability Accounting Measures and Management today!
Read also: COP26 – What Business Leaders Should Know?