India’s G20 presidency will leave a mark on the world: IMF chief

Hailing India’s fast-growing economy as “a bright spot during difficult times,” IMF Managing Director Kristalina Georgieva robustly backed New Delhi’s G20 presidency, saying “it could leave a mark on the world “for years to come”.

The IMF chief identified digitalization, digital money, cross border payments, renewable energy and making international institutions fairer as areas where India can make a mark.

As India takes over the presidency of the grouping of the world’s most advanced economies on December 1, Ms Georgieva expressed the confidence that next year will make all Indians proud. India will be taking over as G20 president from this “position of strength,” she said. “This makes me strongly believe we would see India leaving a mark on the world for years to come during next year’s presidency.”

Alluding to India’s high economic growth in the post-pandemic period, Ms Georgieva said, “India deserves to be called a bright spot in this otherwise darker horizon because it has been a fast-growing economy even during these difficult times.” “But most importantly, this growth is underpinned by structural reforms, among them the remarkable success in digitalization in India — from digital ID to providing all services and support on the basis of digital access,” she said at a press conference during the annual meetings of the Fund and the World Bank on October 13. The IMF chief stressed that India deserved to be called a “bright spot” both because of its growth trajectory in difficult times but also because this growth was underpinned by structural reforms, particularly digitalisation.

Reforming Global Institutions

Ms Georgieva underlined that “bringing more fairness in our institutions” as another area where India can leave a mark. “Next year, we need to complete the 16th quarter review. India has been a very strong voice for the Fund to be financially strong and also to be a strong institution on the basis of fair representation of our members,” she said.

Fast-tracking reform of global economic governance institutions will be a major priority of India during its G20 presidency. Earlier this month, Amitabh Kant, G20 India Sherpa, pitched for reform of global governance institutions such as the World Bank and the International Monetary Fund (IMF). He stressed that these institutions need to be reformed and restructured to enable climate financing as they were designed for the post World War 2 world order but not for the post-climate change era of today, said

Speaking at the B20 Indonesia Global Dialogue in India, organized by CII, Mr Kant underscored that the developed world needs to fulfill the commitments made to the developing nations on climate financing at the United Nations Climate Change Conference in Copenhagen.

“When the western world was industrializing, it was carbonizing the world. When China was expanding, it was carbonizing the world. Now when developing countries have to grow and expand, without carbonizing the world. This necessitates that resources that the developed world, in the name of climate justice, agreed to, both in Copenhagen, COP21, and COP26, should be lived up to,” Mr Kant said.

Outlining India’s priorities, India’s Chief G20 Coordinator Harsh Vardhan Shringla spoke about India’s efforts to make “meaningful contribution in the G20, to support faster, sustainable and inclusive growth.”

“As the largest democracy (PM referred to India as the ‘mother of democracy’), the third largest economy of the world in PPP terms and 2nd most populous country of the world, and at a time of growing economic challenges across the globe in the wake of the Covid pandemic and the Russia-Ukraine conflict, we look forward to making a meaningful contribution in the G20, to support faster, sustainable and inclusive growth,” said Mr Shringla.

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Manish Chand

Manish Chand is Founder-CEO and Editor-in-Chief of India Writes Network (www.indiawrites.org) and India and World, a pioneering magazine focused on international affairs. He is CEO/Director of TGII Media Private Limited, an India-based media, publishing, research and consultancy company.