Modi wants G20 to draw inspiration from 'vibrancy of Indian economy'

Prime Minister Narendra Modi on Friday expressed hope that G20 will draw inspiration from the vibrancy of the Indian economy and work towards bringing back stability, confidence and growth on the global landscape.

In his video message to the G20 meeting of the finance ministers and central bank governors, the prime minister underlined the need for strengthening multilateral development banks for meeting global challenges like climate change and high debt levels.

Observing that the global economy is still suffering from the after-effects of the pandemic and wide-ranging geopolitical tensions, Modi said these developments have threatened the financial viability of many countries.

"It is now up to you (G20 member countries) - the custodians of the leading economies and monetary systems of the world to bring back stability, confidence and growth to the global economy. It is not an easy task," Modi said at the ministerial meeting, the first major G20 event being hosted under India's presidency.

India took over the presidency of G20, a grouping of developed and developing nations, in December last year.

The prime minister expressed hope that the participants 'will draw inspiration from the vibrancy of the Indian economy. Indian consumers and producers are optimistic and confident about the future. We hope that you will be able to transmit the same positive spirit to the global economy'.

Modi urged the members to focus their discussions on the most vulnerable citizens of the world and stressed that global economic leadership can win back the confidence of the world only by creating an inclusive agenda.

"The theme of our G20 Presidency promotes this inclusive vision - One Earth, One Family, One Future," the prime minister said.

He observed that progress on Sustainable Development Goals seems to be slowing down even though the world population has crossed 8 billion.

"Even as the world population has crossed 8 billion, progress on Sustainable Development Goals seems to be slowing down. We need to collectively work to strengthen multilateral development banks for meeting global challenges like climate change and high debt levels," he said.

Highlighting the growing dominance of technology in the world of finance, Modi recalled how digital payments enabled contactless and seamless transactions during the pandemic.

He urged the G20 member participants to explore and harness the power of technology while developing standards to regulate its possible risk of destabilization and misuse in digital finance.

The prime minister noted that India has created a highly secure, trusted, and efficient public digital infrastructure in its digital payments ecosystem over the past few years.

"Our digital payments ecosystem has been developed as a free public good," Modi said as he underlined that it has radically transformed governance, financial inclusion, and ease of living in the country.

Noting that the meeting is taking place in Bengaluru, the technology capital of India, he said the participants can get first-hand experience of how Indian consumers have embraced digital payments.

He also informed about the new system created during India's G20 presidency that allows G20 guests to use India's path-breaking digital payments platform, UPI.

"Examples like UPI can be templates for many other countries too. We would be happy to share our experience with the world and G20 can be a vehicle for this," he said.

Global debt vulnerabilities, risks to the world economy from ongoing war in Europe and fears of resurgence of pandemic as well as IMF and World Bank reforms will be discussed during the first major G20 meeting under India's Presidency, which started on Friday.

Issues concerning the global framework for regulation of crypto currencies that has already been deliberated upon by finance and central bank deputies of G20 countries on Thursday may also figure during the ministerial meeting.

The meeting will see participation of finance ministers and central bank governors of the G20 members, invitee members and heads of international organisations.

In total, there will be a delegation of 72 members attending the meeting. India's Presidency of G20 has come at a time when the global economy is reeling under the impact of year-long Russia-Ukraine war.