New Delhi: India has walked the talk to achieve its financial targets under its G20 presidency, Finance Minister Nirmala Sitharaman said on Saturday.
Key financial achievements under India’s G20 Presidency include a plan to strengthen Multilateral Development Banks (MDBs) to address common challenges, laying down the building blocks for a globally coordinated policy and regulatory framework for crypto assets, achieving financial Inclusion and productivity increases through, among other things, digital public infrastructure, debt reduction for low- and middle-income countries and financing the cities of tomorrow, said the finance minister.
After the G20 leaders reached a consensus on the summit declaration, Sitharaman told the media that people-centric, action-oriented and far-sighted approaches would be adopted in the financial sector.
“It was very clear to us that no one would be left behind,” she said.
“We have sought to support countries, particularly those from the Global South, to be an integral part of the decision-making process,” she added.
In July, G20 member states failed to agree on a joint statement at the end of a meeting of their finance ministers and central bank governors in Gandhinagar, Gujarat, as the bitter war in Ukraine continued to polarize the bloc.
Under the Indian presidency, plans to strengthen multilateral development banks to address common challenges included an agreement on the need for better, larger and more effective multilateral development banks, an agreement to work together to improve the financing capabilities of the world banks and the endorsement of the G20 roadmap for the Implement recommendations of an independent panel on the capital adequacy framework for MDBs and implement the recommendations of a report by G20 expert groups led by Larry Summers and NK Singh, the second volume of which is expected to be published in October.
“Through these achievements, India has seized the opportunity presented by the G20 Presidency to effectively articulate and embed the priorities of the Global South into the broader discussion on MDB reforms,” the Finance Minister said.
Sitharaman said that the Indian presidency has succeeded in setting the building blocks for a globally coordinated and comprehensive policy and regulatory framework for crypto assets.
“Under the Indian presidency, a global push for clearer policy on crypto assets has emerged and a global consensus on crypto is emerging,” she said.
“The Presidency will support the IMF and FSB in defining the contours of the regulatory framework for a globally coordinated approach to crypto assets,” she added.
Under India’s G20 Presidency, progress has also been made in financial inclusion and productivity improvements through digital public infrastructure (DPIs).
“Thanks to the India Stack, India has been able to develop all three fundamental DPIs: digital identity, fast, real-time payments and a platform for the secure exchange of personal data without compromising privacy. This has been embedded in the G20 financial inclusion agenda,” Sitharaman said.
The recommendations cover five aspects of DPIs, she said.
These include the use of DPIs in financial inclusion, promoting well-designed DPIs, regulatory and supervisory aspects of DPIs, institutional and government arrangements of DPIs and ensuring customer protection.
DPIs integrated into the G20 Financial Inclusion Action Plan will run between 2024 and 26, it added.
Sitharaman also said that G20 leaders managed to reach a consensus on the debt solution for nations within a common framework and outside a common framework.
“The G20 will continue to discuss policy issues related to the common framework and regularly make relevant recommendations,” she said.
“(This was) jointly led by the IMF, the World Bank and also the G20 Presidency to enhance dialogue among various stakeholders and address current deficiencies in the debt restructuring process,” she added.
So far, the G20 has finalized the debt vulnerability framework for restructuring the debts of Zambia, Ghana and Ethiopia, which fall under the common framework because they are low-income countries. A similar framework for Sri Lanka, a middle-income country and therefore outside the common framework, is also nearing completion.
Sitharaman also said that the main concerns in financing the cities of tomorrow, another major achievement of the Indian Presidency, were to mobilize resources, finance sustainable, resilient and inclusive cities of tomorrow, promote effective and efficient use of financial resources and to support urban development that is socially inclusive, environmentally conscious and economically sustainable.
“MDBs and development finance institutions can use these principles for their urban infrastructure financing plans,” she added.
Other financial achievements of India’s G20 Presidency included two-pillar solutions for taxation, a mechanism to support timely and appropriate mobilization of resources for climate finance, scaling up sustainable finance for social sectors such as health and education, and conducting global discussions on it Transitional policy, Sitharaman said.
“The outcome of India’s presidency is a commitment to multilateralism and international cooperation,” she said.
“The coming Brazilian presidency will provide strong support and continue momentum on important issues,” she added.
The G20 Leaders’ Meeting, held September 9-10, was the culmination of a year-long process and meetings between ministers, senior officials and civil society on issues of global importance.
Brazil will take over the G20 presidency from India in 2024.
“Through well-designed debates and careful consideration of all perspectives, the Indian Presidency has crafted solutions that resonate with every member and provide a common path forward for all,” Sitharaman said.
“I can confidently say that the Indian presidency will walk the talk,” she added.
