At the yearly Spring gatherings of the International Monetary Fund (IMF) and the World Bank, a senior Indian official emphasised the widespread acknowledgement of India's significant contribution during its G-20 presidency in fostering consensus on various critical global matters. The G20 Summit, hosted by India in New Delhi from September 9-10, saw the adoption of a comprehensive 37-page consensus declaration, effectively bridging significant divergences concerning the Russia-Ukraine conflict.
Moreover, the summit implemented several measures aimed at enhancing global economic stability.
“There is a widespread appreciation of Indian presidency of the G-20 in building consensus on several issues, relevant for global deployment, conducted of various meetings during the presidency as well as the leaders’ summit,” Ajay Seth, Economic Affairs Secretary, told the news agency PTI on Friday.
Union Finance Minister Nirmala Sitharaman is not there for the annual IMF and World Bank meetings due to the ongoing Lok Sabha election. In her place, senior government officials like RBI Governor Shaktikanta Das and Economic Affairs Secretary Ajay Seth represent the Indian delegation. India's ability to offer practical examples of successful development paths is duly recognised.
“There was also an appreciation that the very effective conduct of monetary policies and responsive and responsible fiscal policies is leading to maintaining its financial stability in emerging economies, including India, amid global conditions. There are a few ideas given on sustainable finance about how the financing for climate action should be happening,” Seth said in response to a question.
The second gathering of G20 Finance Ministers and Central Bank Governors under the Brazilian Presidency took place on April 17-18 during the spring meetings. The discussions in the two sessions centred on reimagining finance for a just transition, climate goals, and international financial architecture for the 21st century.
During the initial session, the RBI Governor highlighted India's initiatives, including the issuance of sovereign green bonds of approximately $4 billion and the establishment of a framework enabling regulated entities to accept green deposits. Additionally, on the sidelines of the Spring Meetings, the Economic Affairs Secretary engaged in bilateral discussions with counterparts from the US, the UK, Saudi Arabia, Japan, Brazil, and South Africa, along with the Chair of Financial Stability. In the discourse on reforming the international financial architecture, the RBI Governor stressed the importance of robust macroeconomic fundamentals in managing capital flow volatility. He reiterated the necessity for central banks to maintain a focus on ensuring both price and financial stability.
Seth expressed gratitude to the Brazilian Presidency for crafting the 2024 MDB agenda, which draws from the 2-volume report of the G20 Independent Expert Group on Strengthening MDBs, initiated during the Indian Presidency of the G20. He underscored the importance of MDBs collaborating as a cohesive system and exploring avenues to augment the utilisation of risk mitigation instruments.