BackIndia 'walked the talk' under G20 presidency, says Sitharaman
Sitharaman said that people-centric, action-oriented, and far-sighted approaches were taken through the finance track.
PremiumNew Delhi: India has 'walked the talk' to acheive its finance track objectives under its G20 presidency, finance minister Nirmala Sitharaman, said on Saturday.
The key achievements of the finance track under the Indian G20 presidency include a plan to strengthen the Multilateral Development Banks (MDBs) to address shared challenges, laying down the building blocks for a globally coordinated policy and regulatory framework for crypto assets, gaining financial inclusion and productivity gains through digital public infrastructure, debt resolution for lower and middle-income countries, and financing cities of tomorrow, among others, the finance minister said.
Speaking to the media after G20 leaders reached a consensus on the summit declaration, Sitharaman said that people-centric, action-oriented, and far-sighted approaches were taken through the finance track.
"It has been very clear in our mind that no one is left behind," she said.
"We have endeavoured to support countries, especially those from the global south, to be an integral part of the decision making process," she added.
During July, G20 member nations failed to agree on a joint statement at the end of a meeting of their finance ministers and central bank governors at Gandhinagar, Gujarat, as the grinding war in Ukraine continued to polarize the bloc.
Under the Indian presidency, the plans to strengthen the MDBs to address shared challenges included an agreement on the need for better, bigger and more effective MDBs, agreement to collectively work towards boosting world banks financing capabilities, endorsement for the G20 roadmap for the implementation of recommendations of an independent panel on capital adequacy framework for MDBs, and implementing the recommendations of a report by G20 experts groups headed by Larry Summers and NK Singh, whose second volume is expected to be released in October.
"Through these achievements, India has harnessed the opportunity provided by the G20 presidency to effectively articulate and embed the priorities of the global south in the larger conversation of MDB reforms," the finance minister said.
Sitharaman said that the Indian presidency has been successful in laying down the building blocks for a globally coordinated and comprehensive policy and regulatory framework for crypto assets.
"Global push for clearer policy for crypto assets has emerged under the Indian presidency and a global consensus on crypto is emerging," she said.
"The presidency will support the IMF and FSB to set up contours of the regulatory framework for a globally coordinated approach for crypto assets," she added.
The Indian presidency of the G20 also saw progress made in the financial inclusion and productivity gains front through digital public infrastructure (DPIs).
"Through, the India stack, India was able to develop all three foundation DPIs. the digital identity, the real time fast payment, and a platform to safely share personal data without compromising privacy. This was embedded into the G20 financial inclusion agenda," Sitharaman said.
The recommendations cover five aspects of DPIs, she said.
These include use of DPIs in financial inclusion, fostering well-designed DPIs, regulatory and supervisory aspect of DPIs, institutional and governmental arrangements by DPIs and ensuring customer protection.
DPIs, which are integrated into the G20 financial inclusion action plan, will run between 2024-26, she added.
Sitharaman also said that G20 leaders were able to reach a consensus on debt resolution for nations under common framework and outside common framework.
"G20 will continue discussing policy issues linked to the common framework and make periodically appropriate recommendations," she said.
"(This was) Co-chaired by the IMF, World Bank and also the G20 presidency to enhance the conversation among various stakeholders to address current shortcomings 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 come under the common framework as they are low income nations. A similar framework for Sri Lanka, a middle-income nation and thus outside the common framework, is also about to be finalised.
Sitharaman also said that key concerns to financing cities of tomorrow, another key achievement of the Indian presidency, have been to mobilise resources, financing sustainable, resilient and inclusive cities of tomorrow, to promote effective and efficient use of financial resource, to support urban development that is socially inclusive, environmentally responsive and economically sustainable.
"MDBs and development financing institutions can use these principles for their financing plans for urban infrastructure," she added.
The other achievements of the Indian presidency of G20 under the finance track included two pillar taxation solutions, mechanism to support the timely and adequate mobilisation of resources of climate finance, scaling up sustainable finance for social sectors like health and education, and having global conversations on transition policies, Sitharaman said.
"The outcome of the Indian presidency is a commitment to multilateralism and for international cooperation," she said.
"The upcoming Brazilian presidency will offer strong support and continue the momentum on key issues," she added.
The G20 Leaders’ meeting, held between 9 and 10 September, was a culmination of a year-long process and meetings held among ministers, senior officials and civil society on issues of global significance.
Brazil will take over the G20 presidency from India in 2024.
"Through, well-crafted debates, and careful assimilation of all perspectives, the Indian presidency has crafted solutions that resonate with each member, and offer a shared path forward for all," Sitharaman said.
"I can confidently state that the Indian presidency has walked the talk," she added.
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