HANGZHOU, Sept 3: Global economic slowdown, raising protectionism, structural reforms to expand global trade and creation of jobs, innovation, inclusive growth and climate finance are the key topics to be discussed at the two-day G20 summit starting in this picturesque Chinese city tomorrow.
Prime Minister Narendra Modi will join US President Barack Obama, Chinese President Xi Jinping along with other top world leaders to discuss global efforts needed to boost economic growth and trade.
“India will engage constructively on all the issues before us and work towards finding solutions and taking forward the agenda for a robust, inclusive and sustainable international economic order that uplifts the socio-economic conditions of people across the world, especially those who need it most in developing countries,” Prime Minister Modi has said in his tweet on the G20 summit.
Modi, who is in Vietnam on a maiden visit, will arrive here tonight to attend the summit.
Ahead of the G20 summit, leaders of BRICS (Brazil, Russia, India, China and South Africa) will meet to finalise their strategy for highlighting issues exercising emerging economies.
Heads of the five countries will also be meeting in Goa next month during the BRICS summit to work more coordinated strategy in the face of global economic slowdown and to counter protectionist measures.
Despite the political differences, emerging economies – India and China – are trying to work out more closer cooperation to oppose protectionism from the developed countries, increasing globalisation and expansion of global trade through structural reforms to create more jobs for their massive populations.
“I see a very good opportunity for a coordinated action between India and China,” Secretary Economic Affairs Shaktikanta Das told his Chinese counterpart Vice Minister for Finance Shi Yaobin during the last month’s India-China Finance Dialogue.
“It is very important to point out that the idea of inclusiveness has been retained and has been given greater focus in G20 agenda under Chinese Presidency,” he said.
“Very rightly and in a timely manner, the Chinese Presidency is also giving importance to new industrial revolution on innovation as main drivers of economic growth in the current century,” said Das, who took part in several G20 meetings.
While the Chinese security agencies mounted a massive security operation including heavy scrutiny of the guests in top hotels, the majority of the city’s over nine million population either left for holidays out of the city or stayed indoors reportedly on instructions to ensure a smooth summit.
In many parts of the city, only the authorised G20 vehicles were seen plying on the well laid out roads besides few other vehicles.
Shi said emerging market economies like India, China face greater pressure today.
“In Global community, we keep hearing bad mouthing of emerging economies here and there,” he said.
“So as two important emerging economies, China and India need to build more solidarity, air common voice, urge developed countries to adopt more responsible macro economic policies and lay foundation and enabling environment for global economic recovery,” he said.
Talking about priority areas for India in G20, Das had said, “from our point view basically to convey to the world the need for structural reforms which is one of issues being highlighted by Chinese Presidency will have to continue.”
With GST set to become a reality after the approval of Parliament and several state assemblies, India is pressing for more structural reforms to create more jobs.
The world community should continue with reforms “because that is only way you can revive global growth,” Das said.
On the reforms of the IMF and World Bank, both India and China are on the same page.
With regard to World Bank both India and China are reiterating and stressing the need to have the shareholder reform and recapitalisation of the global lender and governance reforms to give greater voice based on current realities.
In the G20 meetings in the run up to the summit, India has been emphasising the importance of inclusive growth in the world economy.
“Every growth has to be inclusive to result in job creation. Because growth without job creation has its own pitfalls,” Das said, adding that only G20 summit held in Asia highlighted the inclusiveness aspect while it has not figured when it was held in western countries.
India and China are also pressuring the developed nations to implement their commitment for USD 100 billion climate finance. (PTI)
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