India is a land of G’s, we have Parle G, Pandey G, Modi G, and above all FufaG. And the newest addition among these is G20. India has taken the presidency of the G20 Summit from Indonesia for the year 2023.
One may say, are there any relatives of G20 and the answer would be yes! Let’s look at these groupings briefly
- India is not a member of the G8.
- When Russia was expelled from G8, it became G7 (Rich club which excludes China, South Korea etc.
- G12 has not 12 but 13 countries.
- G4 contains giants of western Europe including the UK, Germany, France and Italy.
- G6 is a political grouping of the EU. It has become G5 after the UK left in 2020.
Other distant relatives of G20
- E7 is a grouping of emerging economies including India, China, Brazil, Turkey, etc. The term was given by economists from Pwc. However, it doesn’t meet as a grouping like G20 (ye wo ristedar h jo result wale din phone karte hai).
- P5 (It is the most powerful relative here). It is the name given to the permanent members of the security council.
- G4 (He is Arjun Tendulkar who wants to be P5). It is a grouping of Brazil, Germany, Japan, and India. They want the expansion of the security council and support each other’s claim.
What makes G20 different from its relatives
(aise kya hai isme jo hum padh rahe hai?)
- As opposed to G7, it includes both developed and developing or emerging economies
- It includes countries from the East and the West.
- Unlike P5, it is not limited and includes 20 countries (unlike G12 which has 13).
- It was founded in 1999 after the Asian financial crisis. Its importance of it can be attached to the Global economic recession coming in 2023.
How does G20 function?
- The G20 was upgraded to the level of Heads of State/Government in the wake of the global economic and financial crisis of 2007, and, in 2009, was designated the “premier forum for international economic cooperation”. (Modi Ji will shake hands with his best pals across continents).
- The G20 consists of two parallel tracks: the Finance Track and the Sherpa Track. Finance Ministers and Central Bank Governors lead the Finance Track while Sherpas lead the Sherpa Track. (Fun fact by Topper Naina – Mr. Amitabh Kant is a G20 sherpa. He was earlier CEO of NITI Aayog).
Why is Modiji So Happy About It: Opportunities and Challenges
Russia – Ukraine conflict
- In this conflict, on one side we have Russia, China and Iran. On the other side, we have the US-led western world. Any treaty seems distant as the two sides don’t trust each other.
- India is an old ally of Russia (Remember the Indo–Soviet Treaty of Peace, Friendship and Cooperation signed in 1971 which was crucial in Indo – Pak war of 1971). India is also an ally of the US as it is a member of Quad.
- India can bridge the trust deficit and help broker a peace treaty. Recently PM Modi intervened by saying “this is not an era of war”
Global recession
- Among the global recession in major economies including UK and Germany, India is expected to grow by 6.5 % in FY 2022-23 as per World bank estimates.
- India can project it as a hotspot of FDI. Investors will find better opportunities.
Rule based global order
- As opposed to China’s view (hum jahan khade hote hain, lain wahi se shuru hoti hai), India favors rule based global order.
- It supports UNCLOS (disregarded by China in South China sea), international institutions like WHO and UN.
Champion of Environment
- Topper Naina points “one Earth” is present in emblem of G20 summit launched by government
- India has its own ambitious plans towards climate change adaptation and mitigation which include INDC, ISA, Green hydrogen policy, Ethanol blending, electric vehicles etc.
- India’s efforts in this area were acclaimed by global organizations including the World bank.
Unanimous voice in stopping terrorism
- India has been opposing politicization of UN 1267 committee
- India can use this opportunity to create awareness and bring countries together to fight terrorism
What Does India Hope to Achieve Finally?
- The theme of India’s G20 Presidency – “Vasudhaiva Kutumbakam” or “One Earth One Family One Future”. India wants the world to understand this.
- Emerge globally as a respected, influential and responsible power. This assumes importance when India is celebrating “Azadi ka Amrit Mahotsav (75th year of independence)
To help you prepare 50% faster for competitive exams, ixamBee provides free Mock Test Series all the Current Affairs in English and Current Affairs in Hindi in the BeePedia capsules for GA Preparation. You can also get the latest updates for Bank PO, Bank Clerk, SSC, RBI NABARD and Other Government Jobs.
Also Read
Blockchain Technology – The New Future Of The Globalized World