India is leading the G20 group of nations between
December, 2022 and November, 2023. There are 19 economically big countries and European Union countries which are permanent members of the group. Each of the members must take leadership in turn for a year and India’s Prime Minister, Narendra Modi has been made the President of G20 for this period.
Some of the challenges
The foremost challenges have been linked to the global slowdown. Many organisations, including the IMF predicted the world economy would contract and 25% of the global GDP is growing by less than 2% in 2023, which it defined as a global recession. A more pessimistic prediction has been given recently by the Centre for Economics and Business Research (CEBR). “It is likely that the world economy will face recession next year as a result of the rises in interest rates in response to higher inflation,” according to Kay Daniel Neufeld, Director, and head of Forecasting, CBER.
Secondly, the hostility between Russia and Ukraine has been a great threat to global economic slowdown. At the same time, a huge problem in food and many raw materials supply chain disturbances with inflation have emerged due to this hostility.
Thirdly, unemployment has been very high around the world. About 10 crores more people have slipped into poverty in the pandemic. The overall unemployment situation in India was close to 10% last November. So, reduction of global poverty has been a big challenge for the G20 group. Amitava Kanth, a Sherpa in G20 told in an interview to
Indian Express on December 14, “About 200 million people have gone below the poverty line, 100 million people have lost their jobs, so accelerating pace for sustainable development goal is another challenge.” Fourthly, the overall inflation, particularly food inflation will remain a very big challenge before the G20 in the coming days.
Fifthly, no African country has been included, except South Africa. Without Africa’s participation, prosperity of the world cannot happen. So, inclusion of the African continent in G20 in whatever form, may be a big challenge before India’s Presidency in G20.
Sixthly, global warming has been a very important matter before the world. It needs a long drawn out process. G20 has a role in minimizing pollution in many countries. It will also be a challenge before India to lead the policy implementation for carbon reduction. But there are quite a number of opportunities for India as a leader of G20
Unlike the Non-Aligned Movement (NAM) or Commonwealth Heads of Governments’ Meetings, the G20 is an organisation of global economic affairs, not related to political affairs. Moreover, meetings of G20 are held throughout the year. So, about 215 meetings will be held in different cities of India. So there is a big scope of developing infrastructure in different parts of the country. States can project themselves to attract foreign investments. Additionally, many states can showcase their cultural heritages.
Secondly, according to many economists, India can try to lower its trade deficit by negotiating several policies. According to economist Ashok Gulati, India’s fiscal deficit is highest among the G20 countries. This is about 10% of the GDP if both State and Union deficits are taken into consideration.
Thirdly, a few days ago, RBI Governor Shakti Kanta Das said that India’s next financial crisis may come due to the active presence of the crypto currency. If the anxiety is real then, the impact of crypto currency in the economy can be minimised with the help of G 20 members. In this regard, G20 members can help India to a large extent. Singapore based Chain analysis has recently published the third edition of the Global Crypto Adoption Index, in which India ranked fourth. India has called for international co-operation on the regulation of private virtual currencies and hinted at crypto regulation as a ‘working priority’ at G20.
Fourthly, India can have the opportunity to promote technology transfer to needy countries. It is known that India has been lagging in advanced technology of its own. India has to depend on foreign technology to deal with its climate change, computer making to health challenges and many more. As leader of G20, India can make an agenda in this regard. The biggest challenge has been India herself Prime Minister Narendra Modi said, “India’s G20 Presidency will work to promote this universal sense of oneness. How far India will or can follow its own ideology in leading the working of the group countries, is the biggest challenge.