Global Macroeconomic ‘Spillover’
“What India will prioritise on is reflecting on the global (collateral) spillover,” Sitharaman said.
Emerging countries have been facing the brunt of monetary tightening in developed economies like the U.S. and the U.K., and the ‘spillover’ of the developing situation across the Black Sea, referring to the Russia-Ukraine crisis.
The upcoming presidency will also feature the voice of emerging markets, she said. Incumbent host Indonesia, the upcoming host India and Brazil, the next G20 host, are all categorised as emerging countries.
Readiness to tackle ‘spillovers’ and the preparedness for the same will be one of the priorities, she said.
Debt vulnerability is expected to be a key issue for India, with focus on who will provide relief and what will be the extent of burden sharing.
“Debt vulnerability is important for developing as well as countries regarded as developed,” said Nageswaran, who addressed the conference before the Finance Minister.
Sustainable Development Goals
The process of achieving sustainable development goals should be clear for all and “must be low income country friendly”, Sitharaman said, highlighting the need to refocus on these goals which faced a setback from the pandemic.
Reform Of Multilateral Financial Institutions
In her address, the Finance Minister also called for a reform of multilateral institutions. “We need to understand how multilateral financial institutions are going to be better reformed,” she said.
Sitharaman questioned if the institutions were fatigued and whether they were leveraging their endowments optimally.
Prime Minister Narendra Modi had previously called for a reform of multilateral institutions like the United Nations, the World Bank and the International Monetary Fund.
“…The question is do they want to fund themselves better and unlock the potential they have?” Sitharaman said.
Showcasing Digital Agenda
India’s achievements with the Unified Payments Interface, the Aadhaar Identification system and contribution to the India Stack are expected to also find a mention.
“India’s digital achievements will have to be showcased as members of G20 have shown desire to know how they could really do it,” she said. “Many of them are also engaging with us to see if their systems and our systems can be interoperable.”
India’s G20 presidential stint is expected to serve as a period of attaining consensus on matters requiring global cooperation.
India can bring consensus on issues such as pandemic preparedness, in terms of the financing and health approach, and issues like global taxation, Sitharaman said.
A much-anticipated discussion on cryptocurrency and virtual asset regulation is also expected.
A 2019 legislation on banning cryptocurrency was withdrawn from the Parliament and a final word on the same is yet to be announced amid concerns of national interest.
“We need to understand how crypto assets can be regulated with all countries being on board, because no one country can succeed individually to regulate crypto assets,” Sitharaman said.
Food And Energy Security
Immediate food and energy requirements of countries due to the Russia-Ukraine crisis is also expected to feature in the G20 discussions.
Sanctions against Russia and actions taken by countries is something we will discuss with other G20 members, Sitharaman said.