India and G20: Shaping Global Economic and Financial Policies

When the leaders of the world’s largest economies gathered in New Delhi in September 2023, India was not merely hosting a summit. It was steering the global economic conversation for an entire year. The G20, or Group of Twenty, brings together countries that together account for around 85% of global GDP, roughly 75% of international trade, and about two-thirds of the world’s population. For a nation that has long argued for a fairer global order, holding the G20 presidency was a chance to translate ambition into concrete outcomes. Understanding how India engages with this forum tells us a great deal about how the country positions itself in a rapidly globalising world.

What the G20 is and why it matters 🔗

The G20 began as a forum for finance ministers and central bank governors in 1999, created in response to financial crises that had rippled across emerging markets. After the 2008 global financial meltdown, it was elevated to the level of heads of state and became the premier platform for coordinating economic policy among major economies. Today its membership includes 19 countries, the European Union, and, since 2023, the African Union.

A few features define how the G20 works. It is a consensus-based forum with no treaty, no permanent secretariat, and no binding enforcement. Its decisions are political commitments rather than law. Work is divided across two tracks: the Finance Track, which handles fiscal and monetary matters, and the Sherpa Track, which covers everything from agriculture and digital economy to anti-corruption. Continuity is maintained through the “troika” of the previous, current, and incoming presidencies, which during India’s term comprised Indonesia, India, and Brazil.

Why the platform suits India’s interests 🔗

For India, the G20 is valuable precisely because it sits at the intersection of the developed and developing worlds. It is large enough to shape global rules yet small enough to reach agreement. This allows India to act as a bridge, voicing the concerns of emerging economies while engaging as an equal with established powers. The forum lets India advocate for inclusive and sustainable growth on terms that align with its own development needs.

India’s presidency: theme and approach 🔗

India held the G20 presidency from 1 December 2022 to 30 November 2023, hosting more than 200 meetings in around 60 cities. The theme chosen was “Vasudhaiva Kutumbakam”, meaning “One Earth, One Family, One Future,” drawn from ancient Sanskrit texts. This was not just symbolic packaging. It framed a human-centric approach to global problems and signalled that the presidency would push beyond narrow economic targets toward shared developmental goals.

A distinctive feature was how participatory the presidency became. Through “Jan Bhagidari,” or people’s participation events, the G20 process reached 1.4 billion citizens, involving all states and union territories. By the end of the year, the presidency had produced 87 outcomes and adopted 118 documents, a notable rise compared with previous years.

Championing the Global South 🔗

Perhaps the single most consequential achievement came on the opening day of the New Delhi summit. India proposed, and the membership accepted, the permanent membership of the African Union. With this step, the African Union was officially admitted as a permanent member, becoming only the second regional bloc after the European Union to hold that status.

The significance is hard to overstate. The African Union brings 55 member states into the forum, and its inclusion expanded the G20 to cover roughly 80% of the world’s population. For decades, Africa had only one seat at the table through South Africa. By championing this expansion, India strengthened the voice of developing nations in global economic decision-making and positioned itself as a leader of the Global South. India also managed to secure a consensus leaders’ declaration despite deep divisions among members over the war in Ukraine, which itself was widely seen as a diplomatic accomplishment.

Reforming global financial institutions 🔗

India consistently used the platform to argue that the institutions governing global finance no longer reflect today’s economic realities. The New Delhi Leaders’ Declaration committed members to pursue reforms for better, bigger and more effective Multilateral Development Banks so that institutions like the World Bank could better address modern challenges. The declaration also tackled debt vulnerabilities in developing countries, a pressing concern for many low-income nations facing repayment distress.

Digital public infrastructure as a development tool 🔗

One of the most original contributions of India’s presidency was placing digital public infrastructure (DPI) at the centre of the global development conversation. India drew on its own decade-long experience with systems like Aadhaar for digital identity, the Unified Payments Interface (UPI) for instant payments, and direct benefit transfers that route welfare money straight to citizens’ bank accounts.

Under India’s leadership, G20 digital economy ministers reached a groundbreaking consensus on how to shape DPI as an accelerator of the Sustainable Development Goals. For the first time, a group of countries collectively adopted a shared description of what DPI means: secure, interoperable digital systems built on open standards that deliver services at societal scale. India followed this with two concrete initiatives, the Global Digital Public Infrastructure Repository and a Social Impact Fund, both designed to help countries in the Global South build their own digital systems.

India’s economic agenda within the G20 🔗

Beyond the headline outcomes, India has used the G20 to advance a steady set of economic priorities that align closely with its domestic goals. These efforts predate the 2023 presidency and reflect a consistent posture across multiple summits.

Infrastructure and inclusive growth 🔗

India has repeatedly pressed for greater global investment in infrastructure, especially in emerging and developing economies where financing gaps are largest. This connects directly to its domestic push for roads, ports, energy, and urban development. India has also argued that cities should be treated as engines of economic growth, a theme it advanced during its presidency alongside clean energy transition and a stronger global health agenda.

Energy transition and climate finance 🔗

India has urged the G20 to recognise that developing economies need affordable access to clean energy and the finance to achieve it. At the forum it has stressed the principle of common but differentiated responsibilities, arguing that historical responsibilities and per capita differences must shape how emission cuts and climate finance are distributed. India’s own success in scaling up solar power gave it credibility to lead these discussions by example.

Tackling tax evasion and black money 🔗

India has been one of the most persistent voices in the G20 on financial transparency. At successive summits, Indian leaders have raised the issue of black money and tax evasion, calling for the elimination of safe havens for economic offenders and full commitment to action against financial corruption. India has backed the G20/OECD Base Erosion and Profit Shifting (BEPS) Action Plan and the automatic exchange of tax information, both designed to stop multinational companies from shifting profits to avoid taxes. India has also pushed for stronger global cooperation against fugitive economic offenders, a concern sharpened by high-profile cases of individuals fleeing the country after alleged fraud.

Combating terrorism and corruption 🔗

Given its long experience with cross-border terrorism, India has used the G20 to press for tighter global cooperation against the financing of terrorist activities, including intelligence sharing and anti-money laundering measures. The New Delhi Leaders’ Declaration placed countering corruption high on the agenda, treating it as essential to economic progress, peace, and security, and referencing the work of the Financial Action Task Force in tackling money laundering and terrorist financing.

Labour reforms, startups, and jobs 🔗

India has also showcased its domestic reforms at the G20, seeking international recognition for its work on labour reforms, startup facilitation, and creating a more resilient economy. The New Delhi Declaration’s commitment to promote sustainable, quality and gainful employment reflected priorities India has long advocated, linking global labour standards to inclusive growth.

Aligning global influence with domestic priorities 🔗

What ties all of this together is a clear strategy. India’s engagement with the G20 is not separate from its national development agenda; the two reinforce each other. When India argues for infrastructure investment, digital inclusion, climate finance, or transparent taxation on the world stage, it is advancing the same goals it pursues at home. The G20 gives these domestic priorities a global audience and, occasionally, global commitments.

This dual purpose explains why the presidency mattered so much. It allowed India to set the global economic governance agenda for a year and to align international policy discourse with its own aspirations. Whether on representation for Africa, recognition for digital public goods, or pressure on tax havens, India sought outcomes that served both its own interests and those of the wider developing world.

Limitations to keep in mind 🔗

It is worth remembering that the G20 has real constraints. Because it works by consensus and produces no binding law, its declarations depend on the political will of members to implement them. Geopolitical tensions, such as the divisions over Ukraine, can consume attention and crowd out development-focused work. India’s achievements were significant, but turning commitments on paper into lasting change remains a long-term challenge that extends well beyond any single presidency.

What do you think? Does the G20’s consensus-based, non-binding model make it more inclusive or less effective at solving urgent global problems? And how far should India prioritise the interests of the Global South within a forum dominated by the world’s wealthiest economies?

References

1. https://www.mea.gov.in/Portal/ForeignRelation/G20_Brief_upto_MAR_25.pdf
2. https://www.adb.org/news/features/indias-g20-presidency-opportunity
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9. https://gulfnews.com/amp/story/world%2Fasia%2Findia%2Fmodi-raises-black-money-tax-evasion-at-g20-1.1891394
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