Inclusive forum for global peace and harmony

(MainsGS2:Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.)

Context:

• India’s assumption of the 18th G20 presidency underpins a new epoch for the grouping. 
• For the first time, the ‘Troika’ will comprise three emerging market economies – Indonesia, India, and Brazil. 

G20 Troika:

• The G20 chair is part of a rotating three-member group of immediate past, current, and succeeding presidencies, referred to as the Troika to ensure continuity in the agenda as there is no permanent G20 secretariat. 
• The G20 summits are convened under a system of rotational presidencies and are selected from a different regional grouping of countries. 
• In fact, South Africa’s elevation to the G20 presidency in 2025 will not only consolidate the voice of the Global South but will also mark the completion of one full circle for rotational presidencies among member countries. 

Showcasing cultural heritage and economic prowess:

• India has taken over the G20 presidency on the occasion of the country completing 75 years of its independence and becoming the fifth-largest economy in the world. 
• Thus, with an avowed objective of showcasing its rich cultural heritage and economic prowess to the outside world, it is setting unique precedence by holding more than 200 meetings in over 50 cities spread across the country and not confined to a select few large cities.  
• Further, the run-up to the Summit entails a preparatory process with several ministerial and working group meetings and discussions channeled on two tracks– the Finance Track and the Sherpa Track.

Emergence of the group:

• The G20 was conceived in 1999 in the aftermath of the 1997 Asian financial crisis to discuss matters related to international economic and financial stability and align policies among the most significant and relevant industrialized and developing economies. 
• Until then, the group of advanced countries– the Group of Seven (G7)– was the main forum that discussed international issues ranging from global financial governance to anti-corruption and terror financing, with the view to build consensus and policy response among developed countries. 
• However, the Asian financial crisis brought to the fore the criticality and centrality of developing countries to maintain the multilateral order owing to their deep integration into the global economic systems and cross-border capital flows. 
• Since the immediate context was to mitigate the ill effects of the contagion caused by the Asian financial crisis, the beginning of the G20 (with the addition of 12 economies to the G7 countries) was underpinned by the coming together of their Finance Ministers and central bank governors to discuss how a coordinated response to the emergent crisis and future crises could be made.

Significance during pandemic:

• In 2020, the significance of the G20 was realized one more time when it was held amidst the looming shadow of the COVID-19 pandemic which made a coordinated response a necessity for weathering the storm and recovering with resilience. 
• A set of policies and emergency measures were put together by G20 leaders for protecting people and safeguarding the global economy in response to the pandemic. 
• The subsequent Italian and the Indonesian presidencies continued to focus on the post-pandemic recovery.
• While it seems that the pandemic is largely behind us, the scare caused by the current outbreak in China, the prevailing food and energy crisis caused by the raging Russia-Ukraine conflict, the effects of climate change, and the ominous clouds of global recession caused by sticky inflation have made building consensus on a multitude of global issues during the Indian presidency a formidable task.

Conclusion:

• Under the apt theme of  “Vasudhaiva Kutumbakam” (or “One Earth, One Family, One Future”), India is determined to reinforce the point that the world is one family, and the need for coordinated action has never been so dire.