On September 9 and 10, 2023, New Delhi, India hosted the 18th G20 Summit. The G20 Leaders’ Summit was held in India for the first time.
“Vasudhaiva Kutumbakam,” which translates to “The world is one family,” served as the summit’s theme.
The Global Biofuel Alliance was established, and the G20 Leaders’ New Delhi Declaration addressed a wide range of global challenges, including the conflict between Russia and Ukraine, sustainable development, food security, and these tensions.
Major Outcomes of G20 Summit 2023
Admittance of the African Union to the G20 (G21):
The inclusion of the African Union (AU) as a permanent member of the G20 is a significant milestone for global representation. This move holds several implications:
- Enhanced Representation of Developing Nations:
- The admission of the AU into the G20 is a substantial step towards providing a stronger voice to developing countries within this influential forum.
- Reshaping Global Dynamics:
- The AU’s membership in the G20 provides an opportunity to influence and reform global trade, finance, and investment, potentially leading to more equitable international economic relations.
- Recognition of African Interests:
- African perspectives and interests will now be acknowledged and taken into account within the G20. This inclusivity is vital for addressing global challenges and shaping policies that benefit all nations.
Global Biofuels Alliance (GBA):
- Overview: The GBA is an initiative primarily led by India, with the objective of establishing a coalition involving governments, international entities, and industry players to advocate for the adoption of biofuels. The main goal of this initiative is to position biofuels as a critical element in the shift towards cleaner energy and to contribute to job creation and economic development. It will also work to expedite India’s existing biofuel initiatives, including PM-JIVANYojna, SATAT, and the GOBARdhan scheme. According to the International Energy Agency (IEA), there is a substantial growth potential of 3.5-5 times for biofuels by 2050, primarily due to Net Zero targets, which presents a significant opportunity for India.
- Formation and Founding Members: The alliance was launched with an initial group of nine founding members, including India, the United States, Brazil, Argentina, Bangladesh, Italy, Mauritius, South Africa, and the United Arab Emirates. These members are major players in both the production and consumption of biofuels. Notably, the USA (52%), Brazil (30%), and India (3%) collectively account for around 85% of biofuel production and approximately 81% of its consumption.
- Membership Expansion: So far, 19 countries and 12 international organizations have committed to joining the GBA. Among the G20 countries, Bangladesh, Singapore, Mauritius, and the UAE are supporting the GBA. Outside the G20, countries like Iceland, Kenya, Guyana, Paraguay, Seychelles, Sri Lanka, Uganda, and Finland are also providing their support.
- International Organizations Involved: Numerous international organizations are participating in the GBA, including the World Bank, Asian Development Bank, World Economic Forum, World LPG Organization, UN-Energy for All, UNIDO, Biofutures Platform, International Civil Aviation Organization, International Energy Agency, International Energy Forum, International Renewable Energy Agency, and the World Biogas Association.
India – Middle East – Europe Economic Corridor (IMEC):
- Background: The Governments of India, the US, Saudi Arabia, the European Union, the UAE, France, Germany, and Italy have signed a Memorandum of Understanding (MoU) to create the India – Middle East – Europe Economic Corridor (IMEC). This corridor is part of the broader Partnership for Global Infrastructure Investment (PGII) initiative.
- Partnership for Global Infrastructure Investment (PGII): The PGII was initially introduced at the G7 summit in the UK in June 2021. It aims to fund infrastructure projects in developing nations by combining resources from both the public and private sectors.
- IMEC Project Overview: IMEC stands as a major infrastructure endeavour that links India, the Middle East, and Europe. The primary objective is to establish an extensive network of transportation routes, including railways and sea routes.
- Response to China’s Belt and Road Initiative (BRI): IMEC is viewed as a strategic response to China’s Belt and Road Initiative (BRI), offering an alternative infrastructure network that aims to enhance connectivity and economic cooperation among the participating regions.
- The G20 Global Partnership for Financial Inclusion report, produced by the World Bank, commends the significant impact of India’s Digital Public Infrastructure (DPI) implemented by the Central Government over the last decade.
The document highlights key initiatives that have been instrumental in shaping the DPI landscape:
- Swift Progress in Financial Inclusion:
- India’s DPI approach achieved nearly five decades’ worth of financial inclusion progress in just six years.
- The Jan Dhan-Aadhar-Mobile (JAM) Trinity elevated the financial inclusion rate from 25% in 2008 to over 80% within six years.
- Regulatory frameworks, national policies, and Aadhaar-based verification supported the DPIs.
- Success of Pradhan Mantri Jan Dhan Yojna (PMJDY):
- The number of PMJDY accounts surged from 147.2 million (March 2015) to 462 million (June 2022).
- Among these, women own a majority at over 260 million.
- PMJDY stimulated savings among low-income women, attracting over 12 million customers by April 2023.
- Government to Person (G2P) Payments:
- India’s digital G2P framework facilitated transfers of USD 361 billion to beneficiaries from 53 ministries across 312 schemes.
- This resulted in total savings of USD 33 billion by March 2022, equivalent to 1.14% of GDP.
- Preeminence of Unified Payments Interface (UPI):
- In May 2023 alone, there were over 9.41 billion UPI transactions, valued at Rs 14.89 trillion.
- UPI transactions in FY 2022–23 approached 50% of India’s nominal GDP.
- Enhanced Efficiency in the Private Sector:
- DPI streamlined operations for private organizations, reducing complexity, costs, and time.
- Some Non-Banking Financial Companies (NBFCs) achieved 8% higher Small and Medium-sized Enterprises (SME) lending conversion rates, 65% savings in depreciation costs, and a 66% reduction in fraud detection costs.
- Banks’ customer onboarding costs in India decreased from USD 23 to USD 0.1 with DPI implementation.
- Reduced Compliance Costs for KYC:
- Compliance costs were slashed from USD 0.12 to USD 0.06, making services more accessible to lower-income clients.
- Facilitating Cross-Border Payments:
- The UPI-PayNow connection enables faster and more cost-effective cross-border payments with Singapore.
- Account Aggregator Framework:
- This framework enabled 1.13 billion accounts for data sharing, with 13.46 million consents obtained.
- Data Empowerment and Protection Architecture (DEPA):
- DEPA grants individuals control over their data, fostering innovation and competition.
Here are the key highlights of the G20 Summit 2023:
Tripling Global Renewable Energy Capacity by 2030:
- G20 nations committed to working towards a threefold increase in global renewable energy capacity by 2030.
- If achieved, this step could lead to a reduction of seven billion tonnes of carbon dioxide emissions between 2023 and 2030, according to the International Energy Agency (IEA).
- This aligns with worldwide endeavours to limit global warming to 1.5 degrees Celsius and signifies a significant shift towards cleaner energy alternatives, departing from reliance on fossil fuels.
Dedication to Global Food Security and Nutrition:
- G20 leaders acknowledged the importance of addressing rising commodity prices, encompassing food and energy, which contribute to cost-of-living pressures.
- They expressed a commitment to eradicating hunger and malnutrition, recognizing that global challenges like poverty, climate change, pandemics, and conflicts disproportionately affect vulnerable groups, particularly women and children.
- The G20 declaration underscored the human suffering and repercussions of the conflict in Ukraine on global food and energy security, supply chains, inflation, and economic stability.
- Notably, there was a call for the full and timely implementation of the Black Sea grain initiative.
Advancements in Agriculture:
- The G20’s agriculture working group reached a historic consensus on two significant aspects:
- Deccan G20 High-level principles on Food Security and Nutrition: These encompass humanitarian aid, increasing food production, climate-smart approaches, inclusivity of agriculture food systems, a one-health approach, digitalization of the agriculture sector, and scaling responsible public and private investment in agriculture.
- MAHARISHI (Millets And OtHer Ancient Grains International ReSearcH Initiative): This initiative aims to advance research collaborations and raise awareness about millets and other ancient grains during the International Year of Millets 2023 and beyond.
Promotion of Transparent and Fair Trade:
- G20 leaders pledged to promote transparent, fair, and rule-based trade in agriculture, food, and fertilizer.
- They committed to refraining from imposing export restrictions, reducing market distortions, and aligning with World Trade Organization (WTO) rules.
Strengthening Agricultural Market Information and Monitoring:
- The importance of bolstering the Agricultural Market Information System (AMIS) and the Group on Earth Observations Global Agricultural Monitoring (GEOGLAM) was emphasized for enhanced transparency.
- This includes expanding AMIS to include vegetable oils and enhancing collaboration with early warning systems to mitigate food price volatility.
Small Arms and Terrorist Safe Havens:
- The 2023 New Delhi Declaration builds on past G20 statements, particularly the 2015 Turkiye declaration, strongly condemning terrorism.
- In contrast to the 2022 G20 Bali Leaders Declaration, which primarily focused on terrorism financing and strengthening the Financial Action Task Force (FATF), the New Delhi Declaration covers a broader spectrum of concerns.
- G20 leaders, in the New Delhi Declaration, unequivocally denounce all forms of terrorism.
- The declaration supports efforts by the FATF to enhance global networks for recovering criminal proceeds.
Healthcare Resilience and Research:
- The G20 New Delhi Leaders’ Declaration places significant emphasis on healthcare, highlighting the need to establish a resilient healthcare system.
- It commits to reinforcing the global health framework for more robust, equitable, sustainable, and inclusive health systems, with the World Health Organization (WHO) at its core.
- The objective is to elevate primary healthcare, the healthcare workforce, and essential health services to levels surpassing pre-pandemic conditions within the next two to three years.
- Besides addressing ongoing epidemics like tuberculosis and AIDS, the G20 acknowledges the significance of research on long Covid.
- India’s G20 presidency advocates for integrating evidence-based traditional medicine practices with modern medicine while stressing the importance of a one-health approach to combat antimicrobial resistance.
Finance Track Agreements:
- India’s G-20 presidency lays the groundwork for a coordinated and comprehensive policy and regulatory framework for cryptocurrencies.
- There’s an emphasis on achieving global consensus on regulating crypto assets.
- G-20 leaders recognize the urgent need for more robust and effective Multilateral Development Banks (MDBs) to meet high developmental demands worldwide.
- The India Stack model, which pertains to digital public infrastructure for financial inclusion, is acknowledged as a promising approach.
- The New Delhi Declaration of G-20 leaders emphasizes the monitoring of risks associated with rapid developments in the crypto-asset ecosystem.
India-Mercosur Preferential Trade Agreement (PTA):
- India and Brazil have agreed to collaborate on expanding the India-Mercosur PTA to bolster economic ties.
- Mercosur, a trade bloc in Latin America comprising Brazil, Argentina, Uruguay, and Paraguay, formed the basis for this agreement, which came into effect on June 1, 2009, aimed at eliminating customs duties on a select range of goods.
Climate Financing Commitment:
- The declaration underscores a substantial increase in climate financing, calling for a significant leap from billions to trillions of dollars.
- It emphasizes the need for substantial financial resources, including USD 5.8-5.9 trillion in the pre-2030 period for developing countries and USD 4 trillion annually for clean energy technologies by 2030, to achieve net-zero emissions by 2050.
India’s Cultural Showcase:
- Bharat Mandapam: Inspired by Anubhav Mandapam, a cultural pavilion showcasing India’s rich heritage.
- Bronze Statue of Lord Nataraja: Crafted in the intricate Chola style, depicting the divine dance of Lord Shiva.
- Konark Chakra and Nalanda University Image: Iconic representations, with the Konark Chakra from Odisha’s Sun Temple and an image of the historic Nalanda University as backdrops.
- Thanjavur Paintings and Dhokra Art: Displaying the exquisite artistry of Thanjavur paintings and the traditional Dhokra craft.
- Brass Statue of Lord Buddha: Depicting Lord Buddha in a meditative posture under the Bodhi tree.
- Diverse Musical Heritage: Showcasing a rich spectrum of musical traditions, including Hindustani, Folk, Carnatic, and Devotional music.
Transition of G20 Presidency:
- The Prime Minister of India ceremoniously passed the customary gavel of the G20 chair to Brazilian President Luiz Inacio Lula da Silva. He is set to officially assume the G20 presidency on December 1, 2023.
New Delhi Leaders Declaration (G20 2023):
Global Economic Situation:
- The G20 2023 joint consensus, known as the New Delhi Leaders Declaration, is an official, non-binding statement emphasizing the importance of robust, sustainable, balanced, and inclusive economic growth.
Priorities for the Global Economic Situation:
- Prioritizing the protection of vulnerable populations by promoting equitable growth and enhancing macroeconomic and financial stability. This approach aims to address the cost-of-living crisis and facilitate strong, sustainable, balanced, and inclusive growth.
- Supporting progress towards the 2030 Agenda for Sustainable Development to achieve robust, sustainable, balanced, and inclusive growth.
- Focusing on creating inclusive, sustainable, and resilient global value chains, and providing support for developing countries to move up the value chain.
Trade Facilitation for Growth:
- Ensuring a rules-based, non-discriminatory, fair, open, inclusive, equitable, sustainable, and transparent multilateral trading system, with the World Trade Organization (WTO) as its core.
Recognition of MSME Challenges:
- Acknowledging the challenges faced by Micro, Small, and Medium-sized Enterprises (MSMEs), particularly in developing nations, concerning access to information. The declaration welcomes the Jaipur Call for Action, which aims to enhance MSMEs’ access to information and promote their integration into international trade.
Fighting Corruption:
- Strengthening international cooperation and information sharing for combating corruption, as well as bolstering mechanisms for asset recovery.
- Commitment to seizing, confiscating, and returning criminal proceeds in alignment with global obligations and domestic legal frameworks, including support for the Financial Action Task Force (FATF) and operationalization of the GlobE Network.
Recommitting to Achieving SDGs:
- Pledging collective action for effective and timely implementation of the G20 2023 Action Plan to Accelerate Progress on the Sustainable Development Goals (SDGs).
Strengthening Global Health and Implementing One Health Approach:
- Focus on enhancing the global health framework with the World Health Organization (WHO) at its core.
- Aims to build more resilient, equitable, sustainable, and inclusive health systems, achieving Universal Health Coverage.
- Emphasis on implementing the One Health approach, bolstering pandemic preparedness, and strengthening infectious diseases surveillance systems.
Designing a Circular Economy World:
- Establishment of the Resource Efficiency and Circular Economy Industry Coalition (RECEIC) to improve waste management and significantly reduce waste generation by 2030.
- Promoting the importance of zero waste initiatives.
Other Major Outcomes:
- Addressing significant differences in the Russia-Ukraine war.
- Advocating for the full implementation of the Black Sea Grain Initiative.
- Implementing an Action Plan against Fugitive Economic Offenders.
- Taking steps to counter terrorism and money laundering.
- Aiming for a globally fair, sustainable, and modern international tax system.
- Focus on Digital Public Infrastructure, including areas like cryptocurrency and artificial intelligence.
- Commitment to gender equality and women’s empowerment.
- Introduction of the G20 Deccan High-Level Principles on Food Security and Nutrition in 2023.
The G20 Summit in 2023 commits to a range of critical initiatives:
- Accelerating Inclusive Growth: The G20 is dedicated to promoting strong, sustainable, balanced, and inclusive growth.
- 2030 Agenda Implementation: A strong commitment to expediting the full and effective implementation of the 2030 Agenda for Sustainable Development.
- Environmental Sustainability: The pursuit of low greenhouse gas (GHG) emissions, climate-resilient, and environmentally sustainable development pathways, with an emphasis on integrated and inclusive approaches.
- Health Preparedness: Enhancing access to medical countermeasures and boosting supplies and production capacities in developing countries to better prepare for future health emergencies.
- Debt Management: Urgently and effectively addressing debt vulnerabilities in developing countries to promote resilient growth.
- SDG Financing: Scaling up financing from all sources to accelerate progress on the Sustainable Development Goals.
The G20 Summit 2023 recognizes the pressing need for concerted action to address these pressing global challenges and to pave the way for a more sustainable and equitable future. Cooperation among nations is seen as the linchpin for finding solutions and charting a course toward a better world.
Conclusion
- In conclusion, the G20 Summit 2023 underscores the critical importance of international cooperation in shaping the trajectory of the world. The global community continues to face significant challenges and headwinds that impact economic growth and stability.
- Despite years of cascading crises, there remains an urgent need to redouble efforts to achieve the Sustainable Development Goals (SDGs) outlined in the 2030 Agenda. The world is grappling with rising greenhouse gas emissions, climate change, biodiversity loss, pollution, drought, land degradation, and desertification, all of which pose severe threats to lives and livelihoods.
- Moreover, escalating commodity prices, including those of food and energy, are exerting pressure on the cost of living. Global challenges such as poverty, inequality, climate change, pandemics, and conflicts disproportionately affect vulnerable groups, particularly women and children.
FAQs
Q1: When and where is the G20 Summit in India scheduled to take place?
A1: The G20 Summit in India is scheduled to take place in New Delhi from April 29 to April 30.
Q2: What is the theme of the G20 Summit in India?
A2: The theme of the G20 Summit in India is “Building Consensus for Fair and Sustainable Development.”
Q3: What are the key priorities on the agenda for the G20 Summit in India?
A3: Key priorities on the agenda for the G20 Summit in India include addressing global economic challenges, fostering international cooperation on climate change, advancing digital transformation, and enhancing global health resilience.
Q4: How will India leverage the G20 Summit to strengthen its global leadership role?
A4: India aims to leverage the G20 Summit to showcase its commitment to multilateralism, advocate for equitable development, and foster partnerships for inclusive growth, thus enhancing its global leadership role in shaping the agenda for sustainable development and economic resilience.
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