G20 Summit Takeaways
The 18th G20 New Delhi summit was held in the Bharat Mandapam International Exhibition-Convention Centre on 9th and 10th September 2023. The G20 leaders wholeheartedly embraced the theme of India's Presidency of “One Earth, One Family, One Future”. There were many takeaways from this summit. Let us see the important outcomes.
The G20 embraced the New Delhi Leaders’ Summit Declaration. Emphasizing that “the present era should steer clear of warfare”. The G20 consensus declaration avoided direct criticism of Moscow for the war in Ukraine. The declaration specifies "the war in Ukraine" rather than "the war against Ukraine." It is noteworthy that Russia says it is conducting a “special military operation” in Ukraine.
A substantial outcome of the G20 summit was the formal admission of the African Union (AU represents 1.4 billion African people) into the group, elevating it to the status of a permanent member alongside the European Union. Previously, only South Africa was a member of the G20. This move aimed to enhance the representation of the Global South within the G20, reducing the dominance of G7 countries. The move strengthened Delhi’s push to amplify the voices of developing nations from the Global South on the world stage. Analysts said it was part of India’s efforts to emerge as a leader of the Global South. India will directly benefit from improvement in political and economic influence in the resource-rich continent.
The “spice route” project will be part of the broader initiative called the Partnership for Global Infrastructure Investment. The opening (timeline has not yet been set) of this Indian-Middle Eastern Economic Corridor would revive ancient trade routes and potentially increase the speed of trade between India and Europe by up to 40 percent. It is also seen as a way to foster improved relations between Israel and the Gulf Arab states. Needless to say, it will help India with trade and connectivity against China’s One Belt One Road initiative.
The G20 leaders agreed to pursue a global target of tripling renewable energy capacity by 2030 and acknowledged the necessity of phasing down unabated coal power. The discussion highlighted the need for $4 trillion annually to fund the transition to green energy. The UK committed to providing $2 billion (the biggest single funding) to the Green Climate Fund (GCF) to help developing countries cope with climate change.
The Indian PM inaugurated the Global Biofuels Alliance (GBA) during the G20 Summit in New Delhi. The formation of the GBA will ensure the cost-effective production of Biofuel through technological sharing and building the Global market for Biofuel. The GBA was launched with nine founding members, namely, India, the US, Brazil, Argentina, Bangladesh, Italy, Mauritius, South Africa, and the United Arab Emirates. In addition, 19 countries and 12 international organizations have expressed their commitment to join the GBA. For India, this alliance offers a pathway to reduce its reliance on costly oil imports, enhance energy security, and foster economic growth through enormous employment opportunities and the financial status of farmers.
A paragraph in the G20 declaration that mostly went unnoticed interestingly included a commitment to promote respect for religions. “...we strongly deplore all acts of religious hatred against persons, as well as those of a symbolic nature without prejudice to domestic legal frameworks, including against religious symbols and holy books”. We know that the G20 was formed in 1999 after the Asian financial crisis. However, under India’s presidency it has now included geopolitical issues in the economic platform. It shows that the G20 is responding to the changing nature of the G20 itself and to make it more relevant.
India, known for its positive relations with both Western nations and Russia, judiciously leveraged its unique position for the greater global good. Not only did India facilitate a consensus among the divided bloc, but it also laid the groundwork for deeper future collaboration. This groundwork will help the 19th G21 Summit to be held in 2024 in Rio de Janeiro, Brazil.
Conclusion: For Prime Minister Narendra Modi, leading the G20 has been a year-long opportunity to position India as a significant diplomatic and economic power. The summit provided a platform to attract investment, promote trade, and enhance India’s global standing.