Maximum India at G20
Dear Readers,
The Gateway of India at Apollo Bunder in Mumbai was lit up aesthetically, glittering in tricolour and showcasing the image of Chhatrapati Shivaji Maharaj.
The Taj Mahal Hotel, an iconic building, adjacent to the Gateway, was also resplendent with the tricolour and the G20 logo. With the Arabian Sea in the background, foreign delegates were dancing to Maharashtra traditional folk songs. A few of them were sipping filter coffee in Bangalore and a few others flying kites in Udaipur... India saw many such images this week in different cities with beautiful decorations and huge celebrations. After all, the biggest democracy in the world was writing the first chapter of its G20 Presidency this week. G20 is the principal forum for global economic and financial cooperation representing two-thirds of the world's population. The Presidency is by rotation and India will host more than 200 events in 50 cities during its term.
G20 India agenda
The G20 agenda is far more relevant, starting from the sustainable environment, cities, data sharing, international financial architecture, global partnerships for financial inclusion, joint finance and health task force, international taxation, culture, digital economy and education, to name a few. These are divided into Sherpa and Finance tracks.
Marking the beginning of the Finance Track, the Finance and Central Bank Deputies (FCBD) meeting was held in Bengaluru where more than 160 delegates, including Geeta Gopinath of the International Monetary Fund, participated. Gopinath said, "There's a lot of optimism in the world about India’s growth prospects.” She said concrete resolutions are needed on the debt resolution, crypto meltdown and climate finance.
While it feels great to see the proudly fluttering Indian tricolour and dancing foreign delegates, I also wonder whether amid the celebrations we are showcasing our real strength. I think this is the best time to do it. And we should have a clear roadmap for reaching the $5 trillion economy goal.
India should also use the Presidency to set an agenda which favours emerging and poor nations.
It can play a role by striving to get both Russia and the West off Ukraine. India has strong relationships with both the West and Russia and can play the role of a mediator to end the stalemate.
Barring a few, most G20 nations have raised interest rates, which will increase the cost of doing business across the world and slow down investment. India needs to set the G20 agenda to create new supply chains and manage food shortages to contain inflation.
India can work for cooperation at the G20 over tech regulation to balance the interest of the private sector, the sovereignty and security of nations and economic growth.
With climate change becoming a serious issue, India can take a lead to ensure that carbon emissions and renewable energy targets are met globally.
The G20 Presidency will be a golden chance for India to correct the long-standing anomalies that go against developing countries, especially in the domain of agriculture and food subsidies.
All eyes are on India
From the ninth position a decade ago, India has become the fifth-largest economy. Often we compare India with other countries but we forget that the structure, environment, demography and macroeconomic picture in India are different.
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After the success of UPI, Aadhaar and the digital revolution, the world has changed its perception of India. But a lot needs to be done. There are enough domestic issues that need more attention, specifically for businesses to flourish. A focus on foreign investment for any country is an integral part. If we want to attract foreign investments, it is really critical to understand the experience of the existing foreign companies operating in India. The change of?government also determines the success of the project. The Metro train project in Mumbai was hit after BJP went out of power. The same is the case in Andhra Pradesh where the investing foreign companies tried to drag the state government into international arbitration. Along with the M&A cases, there is a pile of international treaty and transfer related cases pending in the various courts. Despite there being verdicts from the courts and tribunals, authorities again go through the drill of litigation rather than using them as benchmarks. Often in my discussions, the leaders comment on this.
We need a clear roadmap in terms of how we are going to achieve the net-zero commitment. Have policymakers crafted any plans for climate finance? How are they going to phase out the industries that are generating emissions? How would they boost the renewable energy segment?
The era of cheap credit is over and high interest rates are going to pinch hard. At the same time, there is a major shift in the world order as economies are making a U-turn on globalisation. Every country wants to focus on strengthening its local economy. Businesses are looking for opportunities as the world is wide open. In this changed milieu, India has an opportunity to showcase its strength and G20 provides a splendid platform.
This week we interviewed?Chattanathan Devarajan, Co-founder and CEO of Arya.ag an agri-tech company for FinTech Diary? and ETBFSI Explainer had all the details?How CBDC is different from UPI.
Like always, I am adding here the top five stories of the week that you shouldn't miss. If you have any thoughts or feedback, please feel free to share them with me at?[email protected] .
Happy Reading,
Editor,
Amol Dethe
ETBFSI