There's broad support for India's agenda at G20 meeting, says DEA secy

At the first meeting of the Finance Track of the G20 under India’s presidency there was broad support from members for the host nation’s priorities and agenda, Ajay Seth, secretary in the Department of Economic Affairs, said on Wednesday.

“The meeting was conducted with the aim of seeking the views of members on India’s G20 Finance Track priorities for 2023 across workstreams,” Seth said. The meeting was co-chaired by Seth and Reserve Bank of India Deputy Governor Michael Patra. Also in attendance were Chief Economic Advisor V Anantha Nageswaran and Niti Aayog Vice Chairman Suman Bery.

Sessions on the global macroeconomic situation, international financial architecture, infrastructure, sustainable finance, international taxation, global health, financial sector, and financial inclusion were held at the meeting of finance and central bank deputies (FCBD) on Tuesday and Wednesday.

Addressing a media briefing along with Nageswaran, Seth said reforms at multilateral institutions like the International Monetary Fund and the World Bank were discussed at length.

“There were many suggestions, including on governance reforms at these banks. But it was also discussed that the existing capital base, resources can be deployed in a more effective manner,” Seth said. 

He added: “My own view is that blended financing, which is a mix of financing from multilaterals and the private sector, will be beneficial for developing economies.”

Seth said progress on the two-pillar global tax structure being developed by the Organisation for Economic Co-operation and Development (OECD) was also discussed, as were regulations on cryptocurrency, on which broad support was sought from members.

The G20’s Financial Stability Board was said to be working on global draft regulations on cryptocurrency, which the members could adopt.

Seth also said one of the key agenda items throughout India’s presidency will be central bank digital currencies (CBDC) and their usage on a global scale, especially with regards to cross border remittances.

On infrastructure, discussions took place on India’s priorities for the Infrastructure Working Group 2023 including ‘Financing Cities of Tomorrow: Inclusive, Resilient and Sustainable’, Seth said.

“On sustainable finance, members exchanged views on financing for Sustainable Development Goals (SDGs), including climate action to facilitate the development of a sustainable and resilient global economy,” he added.

On Tuesday, the first day of the meeting, discussions on commodity prices, the supply chain shock resulting from the Russian invasion of Ukraine, and the macroeconomic outlook for 2023 took centre stage.

The FCBD meeting is setting the agenda for the meeting of G20 finance ministers and central bank governors, scheduled to be held in Bengaluru in February.

The Finance Track of the powerful G20 grouping is older than the Sherpa Track. There are five working groups in the Finance Track that deal with issues like infrastructure, climate and sustainable infrastructure financing, global taxation, debt levels and sustainability especially in low income nations, multilateral institutions, cross-border financial crimes, and regulation of cryptocurrency and other digital assets.