India's G20 leadership has paved the way for building a great global trust. The Delhi declaration would go a long way for expanding socio-economic horizons of G 21 countries with improved living standards and enhanced trade and investment trajectories.

The G20 Summit held in New Delhi on the 9th and 10th of September 2023 at the Bharat Mandapam venue attended by leaders of 20 member countries and 11 guest countries along with regular international organisation like International Monetary Fund, World Bank Group, UN, WHO among others has given a clear message that even if the world is in a deep crisis, we can still progress and make the world a better place.

G20 New Delhi Leaders’ Declaration

A major breakthrough has happened through the success of the Delhi Declaration, adopted on September 9, 2023, during India's G20 presidency, presents a concise overview of critical global priorities agreed upon by member nations. The declaration covered certain thematic areas like Economic Resilience which acknowledges the global economy's fragility and commits G20 nations to implement prudent monetary, fiscal, financial, and structural policies aimed at fostering growth, reducing inequalities, and preserving macroeconomic stability. Financial Inclusion and Digital Infrastructure which formally endorses the G20's policy recommendations for advancing financial inclusion and productivity gains through Digital Public Infrastructure (DPI). Sustainable Development Commitment acknowledges setbacks in achieving the Sustainable Development Goals (SDGs) and pledges to marshal affordable, accessible financing from diverse sources to bolster sustainable finance for developing countries.

Climate Resolve, a defining feature of the declaration is its robust commitment to environmental sustainability and the urgent mitigation of climate change. G20 member nations agree to bolster their efforts by fully and effectively implementing the Paris Agreement while respecting the principles of common but differentiated responsibilities (CBDR). Multilateral Development Banks (MDBs) Reform, underscores the importance of enhancing Multilateral Development Banks (MDBs) by reimagining their operating models, improving responsiveness, and augmenting financing capabilities to maximize their developmental impact. Women's Empowerment G20 nations pledge to support women's empowerment by promoting full, equal, effective, and meaningful participation of women in decision-making processes. Ukraine acknowledges the need to address global conflicts and touches upon the situation in Ukraine.

G20 Bilateral meetings

Hon’ble Prime Minister Shri Narendra Modi hosted 15 bilateral meetings with leaders from various countries, covering a range of topics. On day 1 of the summit, a meeting was held with leaders of Bangladesh Prime Minister H.E. Sheikh Hasina, Mauritius Prime Minister H.E. Mr. Pravind Kumar Jugnauth and US President Mr. Joe Biden. The leaders reviewed the multi-faceted bilateral cooperation and lauded the positive progress. The leaders of Bangladesh and India look forward to the negotiations on the Comprehensive Economic Partnership Agreement. While the Indian and US counterparts expressed their appreciation for the substantial progress in Initiative for Critical and Emerging Technology (Icet ), defence, space and other areas. Additionally, Hon’ble Prime Minister Shri Narendra Modi engaged in discussions with Canada and held bilateral meetings with leaders from Turkey, UAE, South Korea, EU/EC, Brazil, and Nigeria. In meetings with European counterparts, the leaders discussed India-Middle East-Europe Economic Corridor and reviewed the progress in their bilateral Strategic Partnership. In discussion with leaders of Canada, Turkey and Korea, both sides discussed bilateral cooperation potential areas like trade and investment, defence and security, civil aviation, and shipping. Indian and Brazilian leaders issued a joint statement marking the 75th anniversary of diplomatic relations.

Developments during India's G20 presidency.

Global Trade and Investment related issues: India's G20 leadership formed a Trade and Investment working group (TIWG) to address global trade and investment challenges. Priority areas identified include Trade for Growth and Prosperity, Resilient Trade and Global Value Chains, Integrating MSMEs in World Trade, and Logistics for Trade and WTO Reforms. Because Global Value Chains (GVCs) account for 70% of global trade, the G20 Trade and investment group (TIWG) discussed building a mapping methodology that may make GVCs resilient to future shocks. In the Delhi Declaration, G20 Generic Framework for Mapping Global Value Chains (GVC) was adopted to help members identify risks and build resilience. India's leadership, culminating in the Delhi Declaration, has broadened the scope of the G20. G21 now has 19 members, in addition to the European Union and the African Union.

Effects of India’s G20 Leadership

Digitalization of Trade Documents: Technology significantly impacts cross-border trade, with paperless systems reducing transaction costs and enabling lower-cost internationalization. The G20 has adopted 'High level principles on Digitalization of Trade Documents' to guide countries in implementing measures for cross-border exchange of electronic trade data and documents.

Trade and Environmental Policies: The leaders agreed that trade and environment policies should be mutually supportive and consistent with global trade rules and multilateral environmental agreements. This assumes significance as the dispute settlement mechanism of the WTO has been derailed due to a non-functional appellate body since December 2019.

Multilateral Development Banks (MDBs) for Global Challenges: The Independent Experts Group recommended a triple agenda to harness MDBs' potential: eliminating extreme poverty, boosting shared prosperity, contributing to global public goods, tripling sustainable lending levels by 2030, and creating a third funding mechanism. 17 MDBs, including the World Bank, are identified for overhaul due to global economic and financial dynamics.

Implementing MDBs Capital Adequacy Frameworks: G20 leaders urge multilateral development banks to leverage private capital and implement recommendations from the G20 Independent Review of MDBs Capital Adequacy Frameworks, potentially generating $200 billion in lending for sustainable development goals and climate finance.

Domestic Resource Mobilization in Emerging Markets: The G20 pledges to enhance domestic resource mobilization, tax cooperation, and combat illicit financial flows. Leaders encourage MDBs to leverage private finance for development, focusing on novel financing strategies and partnerships, and acknowledging international efforts.

Addressing Debt Vulnerabilities: The G20 New Delhi Leaders' Declaration emphasized addressing debt vulnerabilities in low and middle-income countries, recognizing the Global Sovereign Debt Roundtable's efforts to improve communication and debt transparency among stakeholders.

Cross-Border Payments for Global Trade: Leaders pledged to achieve faster, cheaper, transparent, and inclusive cross-border payments by 2027 in the G20 Roadmap for Enhancing Cross-border Payments, considering macro-financial implications.

Way Forward

The G20 Summit 2023, orchestrated by India in New Delhi, stands as a testament to global leaders' concerted efforts to tackle pressing challenges. With participation from 19 member countries and the European Union, the summit was a pivotal platform for collaboration. Prime Minister Narendra Modi's strategic bilateral meetings covered multifaceted areas such as economic cooperation, technology, and climate action, solidifying partnerships and commitments. India’s leadership has expanded the horizons of G20 with enhanced trade investments and a consumer market. Such strides will go a long way to improve the living standards of people, more and more synchronization of business cycles and a shared peace and prosperity.

The summit's crowning achievement was the adoption of the Delhi Declaration, a robust commitment to economic resilience, financial inclusion, sustainable development, and climate action. This declaration not only reinforces the global resolve to implement the Paris Agreement but also underscores the unwavering dedication to empowering women across various spheres of society. Furthermore, the summit addressed critical global issues, including conflicts, debt vulnerabilities in low and middle-income countries, and the imperative for cybersecurity in today's interconnected world. India's leadership in fostering international cooperation for a more inclusive, sustainable, and secure world was on full display at the G20 Summit 2023, making it a pivotal moment in shaping our collective global future.

A summary of India’s Leadership at G20 Summit 2023

(Dr. S.P. Sharma is Chief Economist & Director of Research • PHDCCI (PHD Chamber of Commerce and industry, India)

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