Key global issues and India’s opportunity as G20 Chair

India took over presidency of the G20 from Indonesia on December 1, 2022 (India will hold this position till November 30, 2023). The Theme for India’s Presidency is ‘One Earth, One Family, One Future”.

This is a crucial time in terms of the global geopolitical and economic landscape. The first global issue is the Russia-Ukraine war. India in recent months, including the G20 Summit at Bali, held last month, has been repeatedly stating that it is not an ‘era of war’. As Chair of G20, India would also try to bring down tensions between Russia and the West. It would be pertinent to point out, that the US had acknowledged India’s role in negotiating the G20 declaration at Bali. 

In terms of the economy, the world is in for challenging times (according to World Bank estimates, global growth could slip from 5.5 percent in 2021 to a little over 3 percent in 2023). The threat of covid19 still looms large, and global supply chains have been disturbed in recent months, both because of severe covid19 restrictions in China, as well as the Russia-Ukraine war. India has already signalled that it will seek to ‘depoliticise’ supply chains of fertilisers and food.

Another important issue is climate change. India has been pushing not just for compensation for the loss caused as a result of climate change (UN Climate change Summit held in November 2022, but also to create a fund for incentivizing of  decarbonisation by developing countries. Like on other geopolitical and economic issues, India is likely to articulate the views and concerns of the ‘Global South’ on the issue of climate change. 

One of the important dimensions of India’s G20 is the fact, that a lot of G20 related events are being held outside the national capital, and this will give an opportunity to highlight their heritage as well as economic strengths. While underscoring this point, PM Narendra Modi said:

   “The G20 Presidency brings great opportunities for tourism and the local economy”.

200 events related to G20 are likely to be held in 50 cities. The G20 Sherpa meeting has already been held at Udaipur, and local Rajasthani culture and traditions were highlighted during this event and appreciated by attendees. Another event was held at Bengaluru, G20 Finance and Central Bank Deputies (FCBD), from December 13-15, 2022.

It is not just culture and heritage, but many states are seeking to showcase their economic potential through the G20. A number of states have already stated that this will give them an opportunity to showcase their economic strengths. One example is the state of Punjab, which is hosting an education summit at the holy city of Amritsar. Preparations are being made for upgrading the infrastructure and the state has stated that this is a golden opportunity for promoting the state as an important destination.

Importance of hosting international events outside the capital city

Many countries, including China and US, host international events outside their capital cities and this helps in boosting the economy, infrastructure as well as highlighting the culture and heritage

In India too, in recent years many important international events as well as bilateral meetings have been held outside the national capital. The trend of foreign leaders and top CEO’s visiting cities outside New Delhi. While this trend began with the Information Technology (IT) revolution in the late 1990’s, when foreign leaders visited Bengaluru and Hyderabad, it has increased in recent years. Like many other countries, the drivers of economic growth, and even sought after tourist destinations, are not just Mumbai or New Delhi. It would be pertinent to point out, that CEO’s of top companies – Adobe, Microsoft hail from Hyderabad. Tier two cities have also contributed significantly to India’s start up story, and financing for start-ups in tier 2 and tier 3 cities has increased.

Opportunities for entrepreneurs 

It is also a good opportunity for entrepreneurs especially from the cities where these events are being held, to seize potential opportunities. Potential entrepreneurs will get an opportunity to better understand the global economic order, India’s role and potential for Indian businesses. While tier 2 and tier 3 cities are already part of India’s tech-start up story, there is an opportunity now to look at greater investment in ‘climate change’.  Finance Minister Nirmala Sitharaman recently pointed out that start-ups to invest not only in tech, but also in areas like climate change, which may seem ‘less glamorous’.

The G20 is important from a number of dimensions, but one of the important ones, as highlighted earlier, is the opportunity which the G20 provides for smaller cities to highlight their strengths to the rest of the world. Overall the impact of G20 on India will be one filled with positive opportunities to give impetus to sustainable development initiatives already gaining momentum in India.