Prime Minister Narendra Modi on Friday urged G20 finance ministers to focus on an “inclusive agenda” and the most vulnerable citizens of the world as the first ministerial meeting of the world’s largest economies got underway in Bengaluru under the shadow of the Ukraine conflict.
The G20 finance ministers and central bank governors (FMCBG) began their two-day meet on the first anniversary of Russia’s invasion of Ukraine.
The Indian side has sought to keep the focus of its G20 presidency on the economic and geopolitical fallout of the war, especially on the Global South, while working to bridge differences within the grouping on the Ukraine crisis.
The prime minister, in his remarks in English to the FMCBG meeting, made no direct reference to the Ukraine crisis but acknowledged the challenges confronting the finance ministers and “serious economic difficulties” facing the world.
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“Your meeting marks the first minister-level dialogue under India’s G20 presidency. Even as I convey my best wishes to you for a productive meeting, I am aware of the challenges you face. You represent the leadership of global finance and economy at a time when the world is facing serious economic difficulties,” he said.
“I would urge that your discussions should focus on the most vulnerable citizens of the world. Only by creating an inclusive agenda will the global economic leadership win back the confidence of the world. The theme of our G20 presidency also promotes this inclusive vision – ‘one earth, one family, one future’,” he added.
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Modi enumerated recent challenges to the global economy – the after-effects of the Covid-19 pandemic, rising geopolitical tensions in different parts of the world, disruptions in global supply chains, and food and energy security – and noted the “financial viability of many countries is threatened by unsustainable debt levels”.
Trust in international financial institutions has eroded because they were slow to reform themselves, he noted. “It is now up to you – the custodians of the leading economies and monetary systems of the world to bring back stability, confidence and growth to the global economy. It is not an easy task,” he said.
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Modi urged the top finance officials of G20 countries to draw inspiration from the “vibrancy of the Indian economy”.
He added, “Indian consumers and producers are optimistic and confident about the future. We hope that you will be able to transmit the same positive spirit to the global economy.”
Progress on the sustainable development goals (SDGs) has been slowing at a time when the world population has crossed eight billion and collectively efforts are needed to strengthen multilateral development banks to meet global challenges such as climate change and high debt levels, he said.
While pointing to the emergence of technology solutions and digital payments systems amid the pandemic, Modi noted that some innovations in digital finance posed “risks of destabilisation and misuse”. He called on the finance ministers to develop standards to regulate possible risks.
He cited India’s experiences as a model, especially the development of a highly secure, trusted and efficient public digital infrastructure and digital payments eco-system.
“As you are meeting in Bengaluru, the technology capital of India, you will have first-hand experience of how Indian consumers have embraced digital payments,” he said.
India has created a new system that allows G20 delegates to use the country’s digital payments platform, UPI.
“Examples like UPI can be templates for many other countries too. We would be happy to share our experience with the world. And the G20 can be a vehicle for this,” he said.
