India’s G20 Moment

When Prime Minister Narendra Modi asked former Niti Aayog CEO Amitabh Kant to take over as G20 Sherpa, after India assumed presidency of the bloc, his message was clear: that “this was a great opportunity for India -- an opportunity to emerge as a global leader through driving consensus on critical issues facing the world”.

With the global economy facing uncertainties and headwinds, in addition to geo-political tensions, and the spectre of another wave of Covid, the significance of a bloc like G20 becomes much more than what it is often perceived to be -- a global ideation lab.

G20 accounts for 85 per cent of global GDP, 75 per cent of global trade, and 60 per cent of global population. It aspires to bring together the developed and developing world, and drive global consensus. Some perceive the G20 as “a counterbalance to G7” (G20 includes all G7 members), while some also like to believe that India “should use its G20 presidency to play an ideal mediator between the West and the non-Western world”.

Among important takeaways from past presidencies were the creation of the Financial Stability Board, and suspension of debt repayment for low-income countries.

With India as the fastest-growing economy, also acknowledged as the bright spot in the world, the year-long presidency presents it an opportunity to drive a consensus on major macroeconomic issues facing the world that have a significant bearing on the Indian economy and businesses as well.

“I believe this is a fantastic opportunity to present India as an investment destination, and as a tourism destination. City infrastructure is being transformed, which will promote both, ease of doing business and living… The benefits of G20 will be felt not just in this year, but also in the years to come, as the benefits of improved infrastructure, greater brand presence in key tourism

markets will continue to accrue,” G20 Sherpa Amitabh Kant told BW Businessworld, in response to a question.

Gains for India Inc.
There are gains for corporates and the private sector -- some tangible, some intangible. Chairman and CEO of Edelweiss Group, Rashesh Shah, explained to BW Businessworld: “I think it's a big opportunity to really take India centerstage. The Indian economy, at $3.5 trillion, is still about 4 per cent of the global GDP. On other parameters, whether in exports or trade or financial services, we are between 1.5 per cent to 2 per cent of the global. And that is why we don't get as much attention as we should get. We are growing faster. But we are only 3 per cent to 4 per cent of the global market in almost everything. G20 presidency is a good opportunity to break through and get more attention because more attention for India will be very good.”

The G20 meetings, being held across the country, seek to present to the outside world a postcard-perfect image of India, with the economy, green and sustainable growth and finance, entrepreneurship, startups, digital economy, tourism, among the discussion points.

For instance, if the second Employment Working Group meeting in Guwahati discussed, among other things, “Gig and Platform Economy and Social Protection”, the second Sherpa meeting at Kumarakom in Kerala had elaborate discussions on the digital economy, trade and investment, employment, agriculture, among other subjects. The G20 Digital Economy Working Group has decided to prioritise a common digital public platform (DPI), cyber security, digital skilling and global DPI reporting. The first G20 Finance Ministers and Central Bank Governors’ meeting under India’s G20 presidency discussed global economy, international tax, international financial architecture, sustainable finance, among other subjects.

The G20 meetings are being held in 55 locations, across all states and UTs. “All of India is working together to deliver on our G20 presidency. Throughout G20 we are working closely with states to present India as an investment and tourism destination,” said Kant.

While the first Sherpa meeting was held in Udaipur, the Second Sherpa meeting was held in Kumarakom, Kerala. Working group meetings of Sherpa and Finance track have been held in Kolkata, Mumbai, Chennai, Bengaluru, Hyderabad, Lucknow, and Guwahati, amongst other cities.

Among India’s contribution to G20 working groups is a dedicated group on startups. Explained Kant: “Our experience in fostering the startup ecosystem is what led us to create a dedicated Engagement Group on startups. Within a few years, we were able to become the world’s 3rd largest ecosystem for startups. Startups can play a crucial role in the development story of a nation, if not the world.”

The G20 agenda also includes Business20 – a grouping of business leaders and the private sector of the member countries. It has a theme: RAISE – “Responsible, Accelerated, Innovative, Sustainable, Equitable Businesses”. Kant believes that the “private sector can lead us to the next era of growth and prosperity”.

Bearing on the economy
While businesses and Industry are important stakeholders, the G20 events, in India’s presidency, have an immediate bearing on the economy and businesses too. Kant outlined two of them. He told BW Businessworld: “Globally, the tourism industry is worth $5 trillion, of which India holds a 1.5 per cent share. Tourism brings with the associated multiplier effects of enhanced employment and commerce… Similarly, the global MICE (Meetings Incentives Conventions and Exhibitions) market is worth $650 billion, with a small share of India. This is an opportunity to grab a greater share of these markets. Local handicraft and handloom industries are also being given a fillip, leveraging the One District One Product Initiative.”

BW Businessworld asked Kant about the feedback that he is getting from India Inc. on G20 presidency. He said: “The feedback has been fantastic – around the priorities we are pursuing and the opportunities G20 affords India. I firmly believe that India’s leap into the next level of growth will be driven by the private sector, with the government playing an enabling role.”

He added: “Green growth is an area where Indian enterprises can have a global impact. We already have a globally competitive renewable energy industry and have all the ingredients to succeed as a global hydrogen hub. Similarly, in the digital sphere, our startup ecosystem has grown leaps and bounds. The technologies of the future all have a digital backbone and can be used to solve some of the most pressing socio-economic issues the world faces. Solutions devised in India can be adapted across the world.”

As for challenges, he said: “Raising growth and investment remain key challenges for India.” “However, with a robust economy, and an increasing global footprint, supportive government policies, India’s private sector can lead us into the next era of growth and prosperity,” he explained.

Sustainable development a priority

India also seeks to use its G20 presidency to accelerate progress on UN Sustainable Development Goals, and this is an important priority cutting across the Sherpa track, Finance Track and Engagement groups.

“Our priorities have been evolved keeping in mind the global need, particularly that of the Global South. We recognise that the solutions to the world’s most pressing problems can only be solved by working together, and this is reflected in our theme, ‘One Earth, One Family, One Future’. India is a G7 partner, a member of both BRICS and QUAD. This year, we also hold the SCO and G20 Presidency, and hosted a ‘Voice of the Global South Summit’,” explained Kant.

The year-long G20 events are also an exercise in collaboration, confabulation and collation of ideas. This is a point highlighted by former G20 Sherpa Suresh Prabhu, by way of a caveat. He told BW Businessworld: “This is a forum for exchanging ideas. The real event will happen in the form of a summit, which happens later this year. But what is extremely significant is that India has never held a summit of this magnitude.”

Rashesh Shah probably echoes the mood of India Inc. when he explains: “India is a very different country, with its own contradictions... We are very liberal. At the same time, (however) we have our own protectionist tendencies. So for most of the global investors and global companies, it takes 8 to 10 years to get to know India. And once they get to know India, things become very easier for them. On that basis, I would argue that the G20 spotlight is very good and welcome, and we should make most of this spotlight.”