G20 Summit: What are India’s takeaway?

admin
By admin July 6, 2019 17:45

Why in news?

The 14th G20 summit recently concluded in Osaka, Japan. This editions of G20 not only focused on macroeconomy and trade but also on global issues which directly or indirectly impact the global economy. Some of the examples include climate change, health, migration, terrorism, water crisis etc.

Background

  • After the Asian Financial Crisis in 1997-1998, participation of major emerging market countries was needed on discussions on the international financial system. Therefore in 1999, with the aim to discuss policy pertaining to the promotion of international financial, G7 finance members agreed to establish G20.
  • This was the first time Japan hosted the G20 summit in time when protectionism, unilateralism, trade wars, unstability of WTO are on the rise.
  • The primary theme of G20 Summit 2019 is Human-centred future society. Food security, energy security, financial stability terrorism-related issues, innovation in the digital economy and artificial intelligence.

 

Why G20 is relevence for India’s perspective?

  • It is an ideal platform for India to advance its agenda of reformed multilateralism in favor of India. Its support is even more relevant in the context of trade tensions between the United States and China.
  • India is hosting the G20 Summit in 2022. The Osaka Summit is a crucial role in preparing India to host it.

India’s stand on G20?

    • Fight against corruption should be done at all levels by all G20 countries by combating and ensuring that each G20 country has a law to enforce it.
    • Infusion of technology created economic opportunities, it has potential to bridge the digital divide and improve the quality of life.
    • India’s emphasis on the importance of finding solutions to climate change effects. 

 

  • PM shared the vision of 5-I’s to maximise digital technology for society’s benefit in his intervention at G20 on Digital Economy & AI. The 5 ‘I’s are — Inclusiveness, Indigenisation, Innovation, Investment in infrastructure & International cooperation.

 

India’s key take away 

In total nine bilaterals, a couple of plurilateral and one informal BRICS meeting were held. 

With USA
  • Several issues such as tariff, 5G and Chinese data supremacy, Iran and defense were discussed.
  • The step of India’s hiked tariffs on 28 items imported from the US is likely to hurt farmers producing and exporting apples, almonds and lentils. 
  • India has not yet committed to Trump administration’s call for a ban on Huawei plan to rollout 5G in the country. India maintains the decision will be taken considering its own business and security interests.
  • While discussing on Iran, US pushed India for stopping oil imports from Iran, which is a key and trusted supplier of crude oil to India. Moreover, India has strategic interests in Iran, where it has invested heavily in Chabahar port. However, India pressed for the need to maintain stability in the gulf region. 
Indonesia
  • India and Indonesia set an ambitious USD 50 billion target for bilateral trade over the next six years.
  • Connectivity in Indo-Pacific region, trade and investment, deepening maritime cooperation between the two countries and elevating the defence relations to the next level.
Turkey
  • Key issues including defence, counter-terrorism, IT and civil aviation.
  • In terms of exploring the opportunities in trade and investment, it was decided that the Joint Economic Committee meeting between India and Turkey should take place as soon as possible.
Brazil
  • Cooperation in trade and investment, agriculture and bio-fuels in the context of climate change were discussed between two countries.
Australia
  • Discussions on enhancing cooperation in sports, mining technology, defence and maritime cooperation and Indo-Pacific.
Japan
  • Emphasise the need to jointly take projects in the neighbourhood.
  • Bothe the countries are taking forward is setting up a cancer hospital in Kenya
Saudi Arabia
  • Saudi Arabia has increased India’s Haj quota from 170,000 to 200,000.
  • Deepening cooperation in trade and investment, energy security and counter-terrorism with the “invaluable strategic partner”.
South Korea
  • Both the countries expressed mutual desire to synergise India’s Act East Policy with South Korea’s New Southern Policy.
  • Discussed ways to enhance trade, economic and people-to-people relations
Germany
  • Discussed ways to deepen the Indo-German relations and enhance cooperation in areas like artificial intelligence and cyber security.
JAI (Japan-America-India)
  • Main concern was Indo-Pacific region and how the three countries can work together in terms of connectivity, infrastructure, and ensuring that peace and security is maintained.
RIC (Russia-India-China)
  • RIC leaders opposed unilateral actions such as the imposition of protectionist measures.
  • Emphasize on liberalization of trade, maintain a free and open trading system, and to oppose the tendency towards protectionism.
BRICS
  • PM in his address emphasised on the need to stop all the mediums of support to terrorism and racism, interface between trade and the digital economy
  • PM put forward a five-point approach to address common challenges facing the world.
  1. Coordination among the BRICS countries, to counter unilateralism.
  2. Emphasis on the necessary reforms in international financial institution to promote multilateralism.
  3. Energy resources like oil and gas should be available at low prices regularly for continuous economic development.
  4. For sustainable and inclusive development, the New Development Bank should give priority to member countries.
  5. India’s work in disaster management will help other countries in natural calamities.

 

Way Forward

  • Since G-20 summits are annual gatherings of the world’s most important leaders, they should have an agenda that focuses on the here and now and on a means of monitoring progress.
  • Since the immediate challenge was a financial crisis, the group focused on global financial issues. Everything is now discussed at G-20 summits while the really important business gets done in bilaterals on the sidelines.
  • India should focus on multilarelism and emphasize on reform of WTO amidst the time when big players are trying to opt out from WTO and prefering protectionism.

 

admin
By admin July 6, 2019 17:45