G20: President with prowess

India, as the G20 president, assumes a significant role and position in the geopolitically turbulent and energy-starved world reeling under a steep economic slowdown. Not only the South Asian powerhouse can strike an amicable chord with both the Global South and North but has also defied all odds in keeping its economic situation intact amid the turbulent times. Apart from India's distinguished position, it is her exemplary vision of taking people on board in matters of diplomacy that lends it the credibility of reasserting herself as a global leader. In an exclusive interview with ‘Millennium Post’, Harsh Vardhan Shringla, Chief Coordinator for India's G20 Presidency and former Foreign Secretary of India, talks about multiple aspects of the presidency:

As you are the Chief Coordinator for India's G20 Presidency in 2023, could you enlighten me on the importance of the grouping and India assumed Presidency?

G20 members represent around 85 per cent of the global GDP, over 75 per cent of the global trade, and about two-thirds of the world population. This is one of the most important and influential international groupings that include some of the largest economies of the world. All G7, BRICS countries, and P5 members of the UN Security Council are members of the G20. Prominent international organizations such as the UN, OECD, IMF, World Bank, and regional organisations such as ASEAN and African Union are also a part of G20 meetings. G20 is a representative grouping and the decisions it takes find acceptance and are easily implemented.

Talking about the importance of the Indian Presidency, India is a member of SCO, BRICS, and Quad and invited to G-7 meetings. India will preside over the SCO from 2022-23. India was an elected member of the UNSC from 2021-23. Further, India has good relations with ASEAN nations. Therefore, India is suited to balance the interest of various stakeholders and offer inclusive solutions in a fragmented world. India shares a balanced relationship with Global North as well as Global South. For the developing countries, the Indian Presidency can steer the agenda to ensure food, fuel and fertilizer security; climate finance for energy transitions; and, address the debt stress problem which undermines their development and fulfilment of the 2030 Agenda.

Prime Minister Narendra Modi highlighted that the one-year tenure will be celebrated through 'Jan Bhagidari'. If you could elaborate?

Jan Bhagidari means ‘people’s participation'. India’s G20 is People’s G20, therefore, a large part of G20 meetings is dedicated to witnessing the diverse culture and heritage of different regions of India. PM Modi has the vision to take diplomacy to the people. We had 'University Connect' at G20 Secretariat in which the External Affairs Minister answered questions by the students; the G20 Lecture series is being organised in various universities across the country; the G20 Cyclothon in cities; exhibitions at meeting venues where local products are being displayed for the delegates. In this context, I must let you know that the G20 logo was made after including creative inputs from thousands of citizens of India.

Model G20 was organised at G20 Secretariat to include young students in the agenda in which students of 12 nationalities participated. Quiz and essay competitions are being organised all over the country. We are seeing beautiful renditions of the G20 logo in the form of snow sculptures, or the ones built on the model of waste to wealth on the principle of a circular economy. Regional festivals like the Hornbill festival of Nagaland, the International Kite Festival in Gujarat are also being showcased in their unique ways. All these examples reflect Jan Bhagidari.

As the group of 19 countries and the European Union address the global economic issues, what can be the outcome of the year-long programme to address major issues related to the global economy, international financial stability, especially post-COVID and climate change mitigation, and sustainable development?

India is among the few bright spots in the global economy. Our responsible fiscal and policy efforts in fighting the pandemic have enabled us to soundly navigate the difficult phase; therefore, we are the right country to steer discussions amidst volatile macroeconomic situations prevailing in the world. Debt distress in developing countries is one of our major concerns. Climate Finance for energy transitions is another important part of our agenda. Multilateral Financial Institutions need reforms to cater to the needs of developing countries, especially after the pandemic’s shadow on the achievement of SDGs. Accelerating SDGs is a key priority. India will aim to showcase its journey in achieving financial inclusion through digital public goods and enhancing social welfare through DBTs.

India organised a virtual summit with Global South countries recently. How will this impact the economy and international financial stability?

Global South Summit was more about listening to the concerns of the developing countries that face the double whammy of debt stress and climate change and exploring synergies between different countries of the developing world and how the potential moment can be harnessed to include issues sacred to the Global South in G20 discussions. The Summit was organised to listen to the voices of the Global South, especially smaller nations which hardly find representation in multilateral forums but very much face the consequences of decisions that are made at the high tables such as the UN and G20 etc. India aims to deliver an inclusive presidency and this was an effort to realise this goal. As the discussions of the Summit pointed out, debt distress and climate finance are important issues, and there is a need to reform. Multilateral institutions are in tune with the requirements of the current world and cater to the developmental needs of the Global South. Debt stress leads to financial losses, market turmoil, and sharp slowdowns in trade and economic growth which the countries of the Global South can ill afford. During our presidency, we will take up the issues of macroeconomic stability, debt situations, financial inclusion, and sustainable finance to ensure equitable growth across the globe.

Also, the Indian government stated that the country will be the voice of small countries on international forums. What will India gain from this kind of initiative? Does that mean India is moving towards a multi-polar world where India itself is a power rather than being in the US camp, Russian camp or in Chinese camp?

India has time and again proven itself to be a first responder in times of crises in the immediate as well as extended neighbourhood, in times of COVID and even the recent Operation Dost are a few examples. India has always understood the concerns of smaller nations of the Global South who cannot afford the cost a fragmented world and lopsided supply chains bring with them, it harms the developmental agenda and imposes enormous social and economic costs upon them.

India will gain in that it will foster better integration of the Global South if all member countries feel secure. Indirectly, it will open avenues for better trade and strategic relations, and create more diversified supply chains for all developing countries. Providing responsible leadership in a fragmented world will boost their confidence in our abilities. India intends to use its G20 presidency this year to advance the cause of the weakest and poorest countries in an attempt to craft a new global role for itself as a responsible global stakeholder.

While addressing Foreign Ministers of the G20, PM Narendra Modi conveyed that though the impact of the COVID-19 pandemic has been felt the world over, it is the developing world that has been most seriously impacted.

At the Bali Summit, our PM urged everyone to take a pledge to bring digital transformation in the life of every human being, so that no person in the world will be deprived of the benefits of digital technology in the next 10 years. Financial inclusion, social security, health insurance, digital transactions and access to credit while providing the building blocks for a productive, resilient and equitable society. In India, we have encouraged and leveraged homegrown innovations that have resulted in the development of a well-stacked digital public infrastructure and technology-led system. This is especially relevant for the Global South because it is inclusive, scalable, cost-efficient and responsible which can have significant benefits for financial inclusion.

India is the 3rd largest consumer of energy. For the fastest growing economy, what are the plans of India in building international partnerships and also investing in sources of energy?

India imports more than 80 per cent of its energy requirements. We are focusing on diversifying sources of energy, making adequate transitions to green energy, and providing policy incentives to accelerate progress while also focusing on energy efficiency. Energy security is an essential component of sustainable growth, the government is taking innovative and committed measures to ensure this.

• India and US: We have been looking at the US for energy supplies as part of a strategy to diversify its crude and gas sources. India is the fourth-largest international market for US crude oil and the fifth-largest for US Liquefied Natural Gas. The US can meet India’s market demands as the country started building infrastructure for gas-based transition as CO2 emissions of natural gas are much lesser than that of oil. We are collaborating to find out a viable long-term partnership with an innovative pricing mechanism and cost-effective transportation from the US to India. This will help us with advanced US technologies in oil and gas exploration, oil refining (India being the third biggest refiner in the world), and downstream value chain to fulfil the needs of our rapidly growing energy market. During the Leaders’ Summit on Climate in April 2021, India-US Climate and Clean Energy Partnership 2030 was announced which focuses on mobilizing finance and speeding clean energy deployment; demonstrating the scale of innovative clean technologies. It also includes clean Hydrogen and R&D collaboration in solar cell manufacturing and storage. The Investment Incentive Agreement inked at the Tokyo Summit enables the US Development Finance Corporation (DFC) to continue providing investment support in India in sectors of shared priority such as healthcare, renewable energy, SMEs, infrastructure etc.

• International Solar Alliance: The International Solar Alliance was launched by Prime Minister, Narendra Modi, and the then President of France, François Hollande, on the sidelines of CoP21. It is a dedicated platform for cooperation among solar resource-rich countries. It will promote solar power as a sustainable transition to a carbon-neutral future.