India’s G20 Presidency: Priorities and the Road Ahead,

09-10 March 2023

Statement by Ambassador Ruchira Kamboj

to the Group of Friends of Monterrey

Excellencies,

Colleagues,

I thank the Group of Friends of Monterrey for the invitation to participate virtually in your 7^th Retreat at Mexico City. I also thank the hosts Germany, Switzerland and particularly Mexico, and other partners for carrying forward this tradition of convening a frank, informal dialogue in the lead up to the ECOSOC FFD Forum.
 

India’s G20 Presidency comes at a time when the world faces multiple challenges, ranging from climate change, lack of progress in SDGs, the economic slowdown, debt distress, uneven recovery from the pandemic, geopolitical conflict and the attendant shortages of food, fuel, and fertilizers. The list goes on.
 

India’s hope is to serve as a trusted and effective bridge between developing and developed countries, in finding solutions amidst the many crises.
 

Allow me to highlight some key aspects from India’s priorities in the G20 Presidency:
 

One, Climate finance and progress on SDGs are two sides of the same coin. Timely and adequate resources for climate finance, including exploring innovative financing is important. There is a need to set a New Collective Quantified Goal from a floor of $100 billion per year, prioritizing the needs of developing countries. Green transition finance, credit enhancement by MDBs through enhancing and expanding their mandate including innovative instruments such as blended finance, viability gap funding, and interest equalization are a dire need. Public finance must be used to leverage private finance from the market.
 

Two, India through Mission LiFE, or a new lifestyle for the environment is also emphasizing the need for responsible consumption and a circular economy for sustained growth. Large scale renewable energy, green hydrogen, coupled with green ammonia and green shipping: the aim is to set a template for realizing net-zero ambitions. India will work towards a Green Development Pact capturing some of these ideas.
 

Three, India’s attempt is to bring the attention back to the SDGs, particularly financing that has taken a hit with record inflation and increasing debt distress.

Four, Digital platforms such as digital payments, digital health and tech-enabled development from agriculture to education will be key to boosting growth and development. India hopes to shape a Common Framework for Digital Public Infrastructure outlining core principles such as interoperability, scalability, open-source platforms, open standards and privacy.

Five, The world needs reformed and effective multilateral institutions that are more inclusive, representative and democratic, to build resilience and deliver solutions to the pressing needs of our time.
 

Six, Bringing women to the core of economic and professional activity can provide real impetus to socio-economic development. We believe that when women engage with equal access, capacity and agency to take decisions, it improves the lives of families, communities and entire societies.

Colleagues I will also very quickly touch on the recently concluded Finance Ministers’ & Central Bank Governors’ Meeting held in Bengaluru (24-25 Feb’23).
 

The Finance Ministers and Central Bank Governors reiterated the need for well-calibrated monetary, fiscal, financial, and structural policies to promote growth and maintain macroeconomic as well as financial stability. The G20 expressed commitment to sustained macro policy cooperation and support for progress towards the 2030 Agenda, through an agile and flexible policy response, including through targeted fiscal support to vulnerable groups.

Looking ahead, the G20 under India’s Presidency will take forward discussions on the reform of Multilateral Development banks, and the need for them to evolve given the scope and complexity of challenges and the increase in demand on their lending resources, knowledge support, and for catalysing private investment.
 

India will also work within the G20 to strengthen multilateral coordination with all creditors to address the deteriorating debt situation and facilitate coordinated debt treatment for debt-distressed countries. Many of you may be aware that India was the first to back discussions towards Sri Lanka’s debt resolution.

A G20 Sustainable Finance Technical Assistance Action Plan – in the works- is expected to give recommendations for scaling up capacity-building and technical assistance in sustainable finance, including in areas such as transition finance framework and climate and sustainability data, in line with country specific needs and circumstances.
 

We can also expect updates on the international tax system, crypto-assets, and financial inclusion and productivity gains through a well-designed ecosystem backed by digital public infrastructure.

Colleagues,

These were a few bite sized thoughts from the larger G20 conversations under India’s Presidency. Both at our Mission in New York and in New Delhi, we are examining the Financing For Sustainable Development Report 2023 and we can already see several ideas proposed along the themes I have shared today.

I wish you all the best and hope that your discussions in Mexico will lay the ground for what will be a very important Financing For Development Process.

Thank you!

*****