India's role is to develop global consensus, says DEA secretary Ajay Seth

The role of India’s G20 presidency is to lead the effort to develop global consensus, and there continues to be a strong desire that all countries continue to work together to find that consensus, Economic Affairs Secretary Ajay Seth said on Thursday. Seth was speaking to the media on the eve of the third finance track meeting of the G20 in Gandhinagar. 

While responding to a question of why there’s only the chair’s summary and outcome document and no communique, Seth said common ground had been found on all issues with the exception of the impact of the Russia-Ukraine war on the global economy.

 

Chief Economic Advisor V Anantha Nageswaran said an opportunity to meet and discuss, regardless of any agreement, was a very important thing to remember in itself amid a time of growth and uncertainty in the world when policies are evolving.

After 40 years of low inflation, there has been a spell of high inflation in the world with countries trying to figure ways to cope with it, the CEA said. 

Nageswaran said a forum such as the G20 was relevant by the mere fact that it exists in these times, as it represents almost 75 to 80 per cent of the global GDP. “The G20 provides a platform to discuss issues that cut across national boundaries, such as reforming institutions like the World Bank or regulation of cryptos. One country cannot take a stance independently without the cooperation of the others,” the CEA said.

Over the next five days, the finance track will host two sets of meetings. First two days will see finance and central bank deputies finalising the outcome document and the core part of the discussion would be to take a view on the various deliverables and reports that have been prepared. 

The Finance Minister and Central Bank Governors meeting on July 17 and 18 would start with discussions on global economy and global health. “Though the pandemic is behind us, the core part of discussion in the first session will be on how to be better prepared in case there’s another one,” Seth said. 

The themes for other sessions include Sustainable Finance and Infrastructure, International Financial Architecture, International Taxation, and Financial Sector & Financial Inclusion. 

“The objective of the 3rd G20 FMCBG is to review the outcomes of the G20 Finance Track and to seek guidance from Ministers and Governors on the way forward,” a press statement said. 

Seth, who along with RBI Deputy Governor Michael D. Patra, will chair the meeting of Finance and Central Bank Deputies, said the most important deliverable is the report of the G20 Independent Expert Group on Strengthening MDBs.

The other deliverables include report on the progress in the debt treatment for countries under the common framework, a guidance note for developing a globally coordinated framework for the regulation and supervision of crypto-assets, recommendations on advancing financial inclusion and productivity gains through Digital Public Infrastructure to achieve financial inclusion of the last-mile and Principles for Financing Cities of Tomorrow, among others.