The Group of 20 (G20 members) is a group of the world’s most powerful economic forces, comprising 19 countries plus the European Union (EU), whose primary goal is to strengthen global economic and financial cooperation and decision-making. The G-20 has become one of the most influential international organisations, with 85% of global GDP, 75% of global trade, and roughly two-thirds of the world’s population. The G-20 was established in 1999 when the Finance Ministers and Central Bank Governors of 20 significant countries met to discuss the consequences of the Asian Financial Crisis.

 The first G-20 meeting was held in Washington, DC, in 2008. The G-20 has been rising in significance with each summit. The world leaders have declared the expansion of the G-20 in 2009. The 2016 G20 summit, held on September 4-5 in Hangzhou, China, was themed ‘An Innovative, Invigorated, Interconnected, and Inclusive World Economy.’ As the world’s fastest-growing major economy, India’s role will be critical in bringing the summit’s theme to life. 

Key Takeaways for India

The major goal of the summit is to foster global economic cooperation. Following are some of the key takeaways for India:

1. Terrorist attacks and conflicts are threatening the global economy, according to the G20 summit communique. Considering that terrorism is India’s top safety concern, including the country’s concerns in the G20 declaration shows that the country’s problems have been heard. India also lauded the G-20 initiative to combat terrorist financing.
2. The communique requested that the Paris Climate Agreement be ratified by 2016. India and the developing countries in the early stages of economic development cannot afford to implement the Paris Agreement fully. Poverty alleviation is as significant as environmental preservation. Despite the pressure from the final draft, the communique dropped the 2016 deadline favouring member ratification.
3. The communique also made no mention of a deadline for eliminating fuel subsidies. Most of India’s fuel subsidies are for liquefied petroleum gas (LPG), which is used as cooking fuel by most of the country’s middle and lower classes. Although global gasoline prices have been steadily declining, the sudden removal of fuel subsidies would jeopardise India’s food security.

Why Is Implementation Required?

Most of the nations have opted for some principles for improving the economy. However, as the G20 commitments are non-binding, they become more like decorum and are not strongly executed. The best intentions have been considered unusable due to the G20’s lack of enforcement mechanisms and local political opponents to reforms in individual member countries.

 To avoid upsetting any single member state, the G20 members, as an organisation founded on the principles of unanimous agreement and non-hierarchical decision-making, can only take small steps. On the other hand, the Action Plan will be public and subject to the G20’s soft evaluation and assessment mechanisms for tracking progress. One specific takeaway from Brisbane occurred over the weekend.

 India has also consented to the G20’s “bold approach” to counter obvious corporate tax avoidance. With India’s call to recoup black money resonating, a G20-level information-sharing network exposing shell companies and tax havens could assist us in cleaning up our act. Although some critics dismiss G20 meetings as “talkfests,” the unanticipated payoff is a global impetus of principles and morals that can favourably propel domes. Fostering an environment conducive to inclusive and sustainable growth and development is the importance of the summit.

Conclusion

India has also eagerly backed the G20’s “strong stance” against unjustified tax evasion by huge companies. Due to the pressing need to recover black money in India, a G20-level information-sharing network to disclose shell companies and tax havens could help us clean up. Although critics dismiss G20 members’ meetings as “talkfests,” the unanticipated payoff is a worldwide momentum of ideas and standards that may favourably expedite local economic reforms and overhauls in member countries.

 India must also look for deliverables in two areas where the G20 is losing interest. The work of regulating the global financial industry and reorganising international organisations such as the IMF is still unfinished, as it was when the 2008 economic crisis struck. Income inequality and chronic unemployment have significantly impacted GDP.

 The Indian demand to concentrate on the content and quality of development may seem so formulaic. Still, it is essential to repeat if the G20 is to meet the expectations of an indignant world. Aside from the Brisbane Summit, humanistic values are vital to reforming the global economy amid a prolonged downturn.