India gets support for proposed finance track goals for 2023 at G20 meet

The First G20 Finance and Central Bank Deputies Meeting, under the Indian Presidency, saw broad support on the proposed priorities of India’s G20 Finance Track agenda for 2023, Secretary in the Department of Economic Affairs Ajay Seth said.

The meeting, which concluded in Bengaluru on Wednesday, was held under the co-chairship of Seth and Deputy Governor, Reserve Bank of India, Dr. Michael Patra.

The meeting saw a gathering of over 160 foreign delegates, including Deputies from G20 member countries, invitee countries, and international organisations. This marks the beginning of the G20 Finance Track under the Indian Presidency.

The agenda of this meeting was crafted keeping in view the vision given by Prime Minister Narendra Modi and Indian Presidency’s G20 theme.

The meeting was conducted with the aim of seeking the views of G20 members on India’s G20 Finance Track priorities for 2023 across various workstreams.

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Physical presence of most G20 delegations, invitees and international organisations in Bengaluru demonstrates the global commitment to supporting India’s G20 Presidency, particularly amidst the challenging global economic environment, Seth said.

Reflecting the theme of “Vasudhaiva Kutumbakam” and “One Earth, One Family, One Future”, the discussions focused on issues relating to the global economy and risks, strengthening Multilateral Development Banks (MDBs), managing global debt vulnerabilities, financing climate action and Sustainable Development Goals (SDGs) and building resilient, inclusive and sustainable cities of tomorrow.

During the first session on the global economy and Framework Working Group priorities, G20 members discussed global economic challenges, including global inflation, food and energy insecurity and macroeconomic implications of climate change.

In the session on International Financial Architecture, delegates deliberated on various issues, including strengthening MDBs and exchanged views on work to be undertaken in 2023 on key topics including global debt distress, capital flows and global financial safety net.

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In the infrastructure session, discussions took place on India’s priorities for the Infrastructure Working Group 2023 including “Financing Cities of Tomorrow: Inclusive, Resilient and Sustainable”.

On ‘Sustainable Finance’ issues, members exchanged views on financing for SDGs, including climate action to facilitate the development of a sustainable and resilient global economy.

Seth said substantive discussions were held during the session on International Taxation on the priority areas for 2023, including monitoring the progress of the Two-Pillar Tax Package being developed under the OECD/G20 Inclusive Framework, enhancing tax transparency and multilateral capacity building on taxation.

In the session on global health, the G20 Deputies discussed strengthening the coordination arrangement between Finance and Health Ministries for Pandemic Prevention Preparedness and Response (PPR), including expanding the voice of low-income countries by inviting key regional organisations to the discussions.

Financial Sector & Financial Inclusion issues were taken up in the last session of the meeting. The discussions focused on financial sector developments and approaches to advancing financial inclusion through a people-centric vision. Delegates also exchanged views on priorities for appropriate financial regulations and ensuring financial stability through a common approach.

“Overall, the meeting saw a broad support on the proposed priorities of India’s G20 Finance Track agenda for 2023”, Seth said. “Further development of agenda items during the course of the Indian G20 Presidency will be enriched with the views presented by the Finance and Central Bank Deputies representing a wide range of perspectives”.

These discussions will pave the way for the First G20 Finance Ministers and Central Bank Governors Meeting which will be held from February 23 to 25 in Bengaluru, he added.

Responding to a question on discussions regarding cryptocurrency regulations, Seth said, “certainly a lot of views are expressed. Different countries have taken individual approaches. Realising that it is a borderless asset and border-less technology, globally consensus should be built, so that there can be a better understanding and better regulation.” Implication that cryptocurrency has got for macroeconomic situations, monetary policy, banking sector needs to be studied, and it should be fed into the policy to be adopted, he further said, “Regulation should flow from the policy view that is taken. One of the priorities which has been put on the table is to help countries build a consensus for the policy approach.” Answering another question, Seth said, financing for SMEs in an efficient manner, is one of the areas in which the work will happen.

Aimed at showcasing Bengaluru’s startup ecosystem, on Thursday morning delegates attending the G20 Finance and Central Bank Deputies Meeting, will be going to Indian Institute of Science, where several of the startups will be making demonstrations, he said.