New Delhi: Indian Finance Minister Nirmala Sitharaman said on Saturday that India “went well” to achieve the fiscal track goals under its presidency of the G20.
Key achievements of the financial track under India’s G20 presidency include a plan to strengthen multilateral development banks (MDBs) to address common challenges, lay the building blocks for a globally harmonized policy and regulatory framework for crypto assets, and achieve financial inclusion and integration. Productivity gains through digital public infrastructure, debt resolution for low- and middle-income countries, and financing the cities of tomorrow, among others, the Finance Minister said.
Speaking to the media after the G20 leaders reached consensus on the summit declaration, Sitharaman said people-centred, action-oriented and far-sighted approaches have been taken through the financial track.
“It was very clear in our minds that no one would be left behind,” she said.
“We have strived to support countries, especially countries of the Global South, to be an integral part of the decision-making process,” she added.
During July, G20 member states failed to agree on a joint statement at the end of a meeting of finance ministers and central bank governors in Gandhinagar, Gujarat, as the grinding war in Ukraine continued to polarize the bloc.
Under the Indian presidency, plans to strengthen multilateral development banks to address common challenges included agreeing on the need for better, bigger, and more effective multilateral development banks, agreeing to work collectively to enhance the financing capabilities of global banks, and approving the G20 roadmap for implementing development programs. multilateral. Recommendations of an Independent Committee on the Capital Adequacy Framework for Multilateral Development Banks, and Implementation of the Recommendations of the G20 Expert Groups Report Chaired by Larry Summers and NK Singh, whose second volume is expected in October.
“Through these achievements, India has seized the opportunity provided by the G20 presidency to articulate the priorities of the Global South and effectively embed them in the broader conversation on MDB reforms,” the Finance Minister said.
Sitharaman said that the Indian presidency has succeeded in laying the basic building blocks for a comprehensive and globally coordinated policy and regulatory framework for crypto assets.
“Global pressure for a clearer crypto asset policy has emerged under the Indian presidency, and a global consensus on cryptocurrencies is beginning to emerge,” she said.
“The Presidency will support the IMF and the Financial Stability Board in setting the parameters of the regulatory framework for a globally coordinated approach to crypto assets,” she added.
The Indian G20 presidency has also seen progress in financial inclusion and productivity gains through digital public infrastructure.
“Through the India Package, India has been able to advance the three core data governance indicators: digital identity, real-time rapid payment, and a platform to securely share personal data without compromising privacy. This has been included in the G20 financial inclusion agenda.” Seetharaman said.
She said the recommendations cover five aspects of DPIs.
These include the use of DPIs in financial inclusion, the promotion of well-designed DPIs, the regulatory and supervisory aspect of DPIs, the institutional and governmental arrangements by DPIs and ensuring customer protection.
She added that the indicators of financial inclusion, which were integrated into the G20 Action Plan for Financial Inclusion, will continue in the period between 2024 and 2026.
Seetharaman also said that the G20 leaders managed to reach a consensus on resolving countries’ debts within a common framework and outside the common framework.
“The G20 will continue to discuss policy issues related to the common framework and make appropriate recommendations on a regular basis,” she added.
She added, “(It was) a joint presidency of the International Monetary Fund and the World Bank as well as the presidency of the Group of Twenty to enhance dialogue between the various stakeholders to address the current shortcomings in the debt restructuring process.”
So far, the G20 has finalized a debt vulnerability framework to restructure 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.
Seetharaman also said that the key concerns of financing Cities of Tomorrow, another major achievement of the Indian Presidency, is to mobilize resources and finance sustainable, resilient and inclusive cities of tomorrow, to promote effective and efficient use of financial resources, to support urban development. that are socially inclusive, environmentally responsive, and economically sustainable.
“Multilateral development banks and development finance institutions can use these principles in their urban infrastructure financing plans,” she added.
Other achievements of the Indian G20 presidency under the fiscal track included two key tax solutions, a mechanism to support adequate and timely mobilization of climate finance resources, scaling up sustainable financing for social sectors such as health and education, and global talks on transitional policies, said Seetharaman.
“The result of the Indian presidency is a commitment to multilateralism and international cooperation,” she said.
“The next Brazilian presidency will provide strong support and continue the momentum on key issues,” she added.
The G20 Leaders’ Meeting, which took place September 9-10, was the culmination of a year-long process of meetings between ministers, senior officials and civil society on issues of global importance.
Brazil will assume the G20 presidency, succeeding India, in 2024.
“Through well-crafted discussions, and carefully accommodating all points of view, the Indian Presidency has formulated solutions that resonate with every member and provide a common path forward for all,” said Seetharaman.
“I can say with confidence that the Indian presidency has stood by what it says,” she added.