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The G-20 is a group of the world’s most powerful economic forces, consisting of 19 countries plus the European Union (EU), whose main goal is to strengthen global economic and financial cooperation and decision-making. The G-20 has grown into one of the most influential international organizations, representing 85 percent of global GDP, 75 percent of global trade, and roughly two-thirds of the world’s population. The G-20 was formed in 1999 when the Finance Ministers and Central Bank Governors of 20 major countries met to examine the repercussions of the Asian Financial Crisis. The inaugural G-20 meeting took place in Washington, DC in 2008. Since then, the G-20 has grown in importance, and in 2009, world leaders announced that the G-20 will be expanded.G-8 should be replaced as the most powerful organization of wealthy nations. ‘An Innovative, Invigorated, Interconnected, and Inclusive World Economy’ was the topic of the 2016 G20 summit, which took place on September 4-5 in Hangzhou, China. India, as the world’s fastest-expanding major economy, will play a critical role in bringing the summit’s theme to life.
The following are some of the significant takeaways that are beneficial to India’s interests:
- Terrorism and conflicts hamper the global economic outlook, according to the G20 summit communique. Given that terrorism is India’s top security worry, its inclusion in the G20 declaration demonstrates that the country’s concerns have been heard. India also praised the G-20’s initiative to curb terrorism financing. The communique first calls for the ratification of the Paris Climate Agreement by the end of 2016. However, India and other developing countries that are still in the early stages of economic development cannot afford to execute the Paris Agreement fully. Poverty reduction is as vital as environmental preservation. As a result, despite the pressure from the final document, which was drafted by the United Nations and China, omitted the 2016 deadline and instead called for ratification by member states as soon as possible.
- There was also no mention of a deadline for the elimination of fuel subsidies in the Communiqué. Liquefied Petroleum Gas (LPG) accounts for the majority of India’s fuel subsidies, and it is utilized as cooking fuel by the majority of the country’s middle and lower classes. Despite the fact that worldwide gasoline prices have been steadily declining, any abrupt elimination of fuel subsidies would jeopardize India’s food security.
The G-20 restated its commitment to avoid competitive devaluation, which causes currency rates to move in a turbulent and disorderly manner. Indian exports will suffer as a result of artificially weakened currencies. Innovations will not only determine future growth but will also help to generate new growth drivers. For catapulting your business forward, you’ll need to be innovative. In recent years, India’s economic growth has been unable to attain the 7% threshold. The G-20 communique affirmed the G-20 Blueprint for the development of a Global Infrastructure Hub in Sydney, which will act as a clearinghouse and powwow facility for needy governments and wealthy investors to sit across the table and strike agreements, has been the subject of significant pre-summit lobbying and persuading by the host Australia. In the run-up to the summit, Australian Prime Minister Tony Abbott spoke on the phone with his Indian counterpart Narendra Modi, gaining his approval for “new procedures” to boost infrastructure spending. Innovative Growth is a new agenda that will act according to each country’s circumstances.
Implementation is required.
Because of their nonbinding character, these promises tend to be heavy on formality and poor on implementation, despite the fact that they signal that each country has a road map for economic revival. The G20’s lack of enforcement mechanisms, as well as local political opposition to reforms in individual member countries, have rendered even the best intentions ineffective. The G20, as an institution founded on the principles of consensus and non-hierarchical decision-making, can only make small steps in order to avoid upsetting any single member state. The Action Plan, on the other hand, will be on the record and can be subjected to the G20’s soft monitoring and evaluation mechanisms for tracking progress inside each country. One concrete takeaway from Brisbane, which took place over the weekend
Dividends that were not expected
India has also agreed to the G20’s “strong approach” to combating obvious tax avoidance by big corporations. With India’s call for the recovery of black money resounding, a G20-level information-sharing network to reveal shell corporations and tax havens might help us clean up our act. Despite the fact that some critics denigrate G20 gatherings as “talkfests,” the unexpected payoff is a worldwide impetus of values and standards that can positively propel domes.
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FAQs
What was the impact of the G20 summit on India?
This incredible achievement in the fight against the global pandemic has been aided by a budget allocation of INR 35,000 crores (approximately $ 4.7 billion) in the Union Budget 2021-22 for vaccine development and manufacturing, resulting in a whopping 137 percent increase in total healthcare spending in FY 2021-22.
What is the goal of the G20 meeting?
The G20 is a group of twenty of the world's top economies that meets on a regular basis to coordinate global policy on trade, health, climate change, and other issues. It was founded in 1999. The 2008 financial crisis, Iran's nuclear programme, and how to respond to the Syrian civil war have all been discussed at previous summits.
What was the impact of the G20 summit on India?
This incredible achievement in the fight against the global pandemic has been aided by a budget allocation of INR 35,000 crores (approximately $ 4.7 billion) in the Union Budget 2021-22 for vaccine development and manufacturing, resulting in a whopping 137 percent increase in total healthcare spending in FY 2021-22.
What is the goal of the G20 meeting?
The G20 is a group of twenty of the world's top economies that meets on a regular basis to coordinate global policy on trade, health, climate change, and other issues. It was founded in 1999. The 2008 financial crisis, Iran's nuclear programme, and how to respond to the Syrian civil war have all been discussed at previous summits.
