In News:

• India will host the G20 leaders’ summit next year on September 9-10. It will assume the presidency for one year — from December 1, 2022 to November 30, 2023.

In Focus: G-20

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• G-20, a group of finance ministers and central bank governors from 19 individual countries and European Union, was established in 1999.
• G20 was elevated to a forum of Heads of State/Government in 2008 to effectively respond to the global financial crisis of 2008.
• G-20 is a forum, not a legislative body, its agreements and decisions have no legal impact, but they do influence countries' policies and global cooperation.

Significance of G20

• Carries significant weight
  • G20 members represent around 85% of global GDP, over 75% of global trade, and two-thirds of the world’s population.
  • G20 members contribute 79% of the world carbon emissions and hence this platform assumes significance in shaping the discussion on climate change.
• Promotes Multilateralism
  • Since 2011, the G20 summit has been held annually, under a rotating presidency.
  • The practice of rotating the chair gives all the members a chance to shape the global agenda.
• A number of overarching themes
  • Initially, the G20 focused on broad macroeconomic policy, but has since expanded its ambit to include trade, climate change, sustainable development, energy, environment, climate change, anti-corruption etc.
    • Eg., 2021 summit decided to stop funding coal-fired power plants in poor countries by the end of 2021.
    • It also committed to seek carbon neutrality “by or around mid-century”.
    • 2021 summit endorsed the Two-Pillar Solution to Address the Tax Challenges Arising from the Digitalisation of the Economy.
• United Fight against COVID-19 Pandemic
  • In March 2020, G20 leaders pledged to inject $5 trillion into the global economy to reduce the economic impact of the coronavirus pandemic.
  • In addition to this, they also agreed to contribute to WHO’s COVID-19 Solidarity Response Fund on voluntary basis.

News Summary

• The Ministry of External Affairs (MEA) announced that G20 Leaders’ Summit will be held in New Delhi on September 9 and 10 in 2023.

Key highlights

• Multiple meetings will be held to select diverse topics for the discussion
  • India will hold over 200 G20-related meetings across the country during its presidency of the grouping.
• Guest countries during India’s presidency
  • Bangladesh, Egypt, Mauritius, Netherlands, Nigeria, Oman, Singapore, Spain and the UAE will be the guest countries at the event.
• Troika of G20
  • India is currently part of the G20 Troika [current, previous and incoming G20 Presidencies] comprising Indonesia, Italy and India.
  • During India’s Presidency, India, Indonesia and Brazil would form the troika.
    • This would be the first time when the troika would consist of three developing countries and emerging economies.