India to press for collective efforts to deal with spillovers of actions by rich nations at G20: FM

New Delhi: India will press for collective efforts to deal with the spillovers of happenings in advanced economies as well as global regulation of crypto assets to check terror funding under its G20 presidency, Finance Minister Nirmala Sitharaman said on Tuesday.

The minister outlined eight priority areas, including reforms in multilateral institutions and food and energy security, for discussion under its G20 presidency which will begin from December 1. India will take over the presidency of G20, which is a grouping of 20 developed and developing nations, from Indonesia. India is taking over the presidency at a crucial juncture when the world is facing multiple headwinds on account of the Russia-Ukraine war, increasing crude oil prices, rising interest rates and slowdown in global demand.

"We are probably at a very comfortable stage in the sense of comparing with other economies, our macroeconomic fundamentals are fine," Sitharaman said, adding that emerging markets always face the collateral and unintended spillovers of happenings in the developed countries. She said at the G20 forum India is constantly maintaining its position and voicing the concerns of emerging markets and low- and middle-income countries.

"Particularly at a time when we are also facing the collateral spillovers which are unintended ... How much countries like India or in the middle or low income bracket or emerging markets can bear the brunt of spillovers? Can you at all be ready for unpredictable spillovers, and how much can you be ready?

"Therefore, (discussions on) spillovers will be (a) priority," Sitharaman said at ICRIER's G20 conference.

Warning of a recession in advanced economies, IMF last month lowered global growth projections to 3.2 per cent for 2022 and 2.9 per cent for 2023. The World Trade Organisation (WTO) expects global trade growth to slow down to 1 per cent in 2023, from 3.5 per cent this year, due to global uncertainties.

To a question on whether sanctions imposed by the West on Russia have backfired, Sitharaman said they could be a part of 'spillover' discussions at the G20. "That is what I thought I will be covering as a subject under the spillovers. So certainly, members will have to talk about it. Actions taken at the early stages of the Russia-Ukraine war, whether it is sanctions on payments through the SWIFT, or subsequently on fuel trading ... You also have probabilities of newer such things coming in. So these are spillovers of decisions. Those will have to be definitely discussed," Sitharaman said.