India hosts the First G20 Finance Meet in Bengaluru

A Draft Correspondent | Bengaluru

The First G20 Finance and Central Bank Deputies Meeting, under the Indian Presidency, was held in Bengaluru, Karnataka, during December 13-14, 2022, under the co-chairship of Secretary, Economic Affairs, Ajay Seth and Deputy Governor, Reserve Bank of India, Dr. Michael Patra marking the beginning of the G20 Finance Track under the Indian Presidency. The meeting witnessed a gathering of over 160 foreign delegates including Deputies from G20 member countries, invitee countries, and International Organisations. During the two days were held seven discussion sessions and two side events. The delegates were also given a glimpse of the traditional as well as the contemporary culture of Karnataka through a vivid display of different art forms.

A glimpse of the traditional culture of Karnataka through a display of an art form

The meeting was conducted with the aim of seeking the views of G20 members on India’s G20 Finance Track priorities for 2023 across various workstreams. A side event on ‘Strengthening MDBs to Address Shared Global Challenges of the 21st century’ was held on the sidelines of the Deputies meeting. This event, moderated by Suman Bery, VC NITI, focused on discussing how MDBs can help countries in addressing trans-boundary challenges. US Finance Deputy, Andy Baukol and Saudi Arabia’s Finance Deputy, Ryadh Alkharief alongwith Director-General of ADB, Tomoyuki Kimura, and Prof. Devesh Kapur of John Hopkins University participated as panellists and shared their views on the topic. Another side event on ‘Role of Central Banks in Managing Climate Risk and in Green Financing’ was also held.

Reflecting the theme of 'Vasudhaiva Kutumbakam' and 'One Earth, One Family, One Future,' the discussions focused on issues relating to the global economy and risks, strengthening Multilateral Development Banks (MDBs), managing global debt vulnerabilities, financing climate action and Sustainable Development Goals (SDGs) and building resilient, inclusive and sustainable cities of tomorrow.

The discussions paved the way for the First G20 Finance Ministers and Central Bank Governors Meeting

During the first session on the global economy and Framework Working Group priorities, G20 members discussed global economic challenges, including global inflation, food and energy insecurity and macroeconomic implications of climate change.

In the session on International Financial Architecture, delegates deliberated on various issues, including strengthening Multilateral Development Banks (MDBs) and exchanged views on work to be undertaken in 2023 on key topics including global debt distress, capital flows and global financial safety net.

In the infrastructure session, discussions took place on India's priorities for the Infrastructure Working Group 2023 including 'Financing Cities of Tomorrow: Inclusive, Resilient and Sustainable.'

On Sustainable Finance issues, members exchanged views on financing for Sustainable Development Goals (SDGs), including climate action to facilitate the development of a sustainable and resilient global economy.

Substantive discussions were held during the session on International Taxation on the priority areas for 2023, including monitoring the progress of the Two-Pillar Tax Package being developed under the OECD/G20 Inclusive Framework, enhancing tax transparency and multilateral capacity building on taxation.

In the session on Global Health, the G20 Deputies discussed strengthening of the coordination arrangement between Finance and Health Ministries for Pandemic Prevention Preparedness and Response (PPR), including expanding the voice of Low-Income Countries by inviting key Regional Organizations to the discussions.

Financial Sector & Financial Inclusion issues were taken up in the last session of the meeting. The discussions focused on financial sector developments and approaches to advancing Financial Inclusion through a people-centric vision. Delegates also exchanged views on priorities for appropriate financial regulations and ensuring financial stability through a common approach.

Overall, the meeting saw a broad support on the proposed priorities of India’s G20 Finance Track agenda for 2023. Further development of agenda items during the course of the Indian G20 Presidency will be enriched with the views presented by the Finance and Central Bank Deputies representing a wide range of perspectives.

These discussions will pave the way for the First G20 Finance Ministers and Central Bank Governors Meeting to be held from 23 February - 25 February in Bengaluru, Karnataka.

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