- After the Asian Financial Crisis in 1997-1998, it was acknowledged that the participation of major emerging market countries is needed in discussions on the international financial system, and G7 finance ministers agreed to establish the G20 Finance Ministers and Central Bank Governors meeting in 1999.
- The first G20 summit occurred in Berlin, in December 1999, and was hosted by the German and Canadian finance ministers.
- It is the premier forum for international economic cooperation.
- The G20 brings together the leaders of both developed and developing countries from every continent.
- G20 members represent around 80% of the world’s economic output, two-thirds of global population and three-quarters of international trade .
- Members :Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Republic of Korea, Russia, Saudi Arabia, South Africa, Turkey, the United Kingdom, the United States and the European Union (EU).
- Chairmanship: The chairmanship of the G-20 leaders' summit rotates among four groups of countries.
- The host country of the G20 summit leads the group over the course of one year from December through the following November as the G20 presidency.
- Sherpas, who are representatives of leaders of G20 member countries, coordinate on the agenda of a summit. Former Union Minister Suresh Prabhu was India's Sherpa at the Osaka G20 summit.
- There are two tracks in G-20 - Finance Track and Development Track.
- Finance Track is managed by the secretary (economic affairs) as India’s Deputy to G-20 and
- The Development Track is coordinated by the Sherpa.
Recent developments : The 14th edition of G-20 meeting was held in Osaka, Japan.
- The Osaka declaration welcomed the UNSC Resolution 2462, which calls upon countries to prevent and counter the financing of terrorism, especially in its new forms.
- For the first time, India will host the annual G20 summit in 2022
Recently, the 14th G-20 summit was held in Osaka, Japan.
- The G20 Summit on Financial Markets and the World Economy is held every year to discuss the critical issues affecting the global economy.
Important takeaways for India at G-20
- Taxing global digital companies- India has made a strong case for adoption of "significant economic presence" concept for taxing global digital companies.
- India had introduced this concept in the Income Tax Act for taxation of non-residents in India or global digital companies.
India’s engagements at the Osaka Summit:
- India raised several Indian concerns at the G-20 deliberations, including the need for cooperation on dealing with serious economic offenders and fugitives, as well as climate change funding.
- India, South Africa and Indonesia among others chose not to sign the declaration on Osaka Track because it would undermine the core WTO principles for arriving at consensus-based decisions.
- Prime Minister Narendra Modi attended two informal trilateral and BRICS meetings.
- In discussion with Indonesian President the two countries set $50 billion bilateral trade by 2025. After ending discussion with President Joko,
- PMO attended Japan-America-India (JAI), a trilateral meeting.
- PM also hosted another informal RIC (Russia-India-China) meeting in Osaka, Japan and discussed global issues like terrorism climate change.
- Another informal meeting of all BRICS nations was held on the sidelines of G20 summit in Osaka.
Boycotting Osaka Track- India boycotted the “Osaka Track” on digital economy at the G20 leaders’ summit in Osaka, because it reportedly undermines multilateral negotiating processes based on consensus-based decision-making in global trade negotiations, and denies policy space regarding digital economy to developing countries.
- Along with India, Indonesia and South Africa also boycotted the Osaka Track. Developing countries have consistently demanded that negotiations on digital economy/e-commerce must be carried out on the basis of the 1998 WTO Work programme.
- Countries including the EU, France, Germany, Japan, Russia, UK, USA, Singapore, Thailand, and Vietnam signed the “Osaka Track“, a framework for promoting cross-border data flow with enhanced protections for intellectual property, personal information, and cybersecurity.
Outcomes of the summit:
- Adoption of the ‘G20 Implementation Framework for Actions on Marine Plastic Litter’.
- The ‘G20 Karuizawa Innovation Action Plan on Energy Transitions and Global Environment for Sustainable Growth’ for identifying “innovation gaps” and actions that support an energy transition.