Finance ministers from the Group of 20 nations (G20) will address critical global economic challenges during a meeting in India, including the threats posed by climate change and rising debt among low-income countries.
The finance minister of India Nirmala Sitharaman said the G20 will focus on strengthening the global economy as growth remains uneven and below average.
In her opening remarks ahead of the meetings being held in Gandhinagar, a city in the western Indian state of Gujarat, Ms Sitharaman said: “What we need are coordinated international efforts to navigate this challenging period.”
Earlier on Monday, Ms Sitharaman and US treasury secretary Janet Yellen said the two countries were working together to further the group’s agenda.
The global economy & global health are inextricably linked. This morning, I urged @g20org Finance Ministers & Central Bank Governors to:
1. prioritize the #G20 Joint Finance & Health Task Force’s work
2. invest in the Pandemic Fund
3. see health as a productive sector
Together! pic.twitter.com/vZUwLYw1GNAdvertisement— Tedros Adhanom Ghebreyesus (@DrTedros) July 17, 2023
They spoke after holding talks on the sidelines of the G20 meetings, a sign of the importance of their countries’ relationship at a time of tension with China.
“The world is looking to the G20 to make progress on key challenges like climate change and pandemics as part of our work to strengthen the global economy and to support developing countries,” Ms Yellen said.
Ms Sitharaman said a priority for the G20 and host country India is strengthening global development banks and reaching a consensus on “intractable issues associated with rising indebtedness of low and middle-income countries”.
Ms Yellen added that it was vital to “press for more ambition and specific reforms” with respect to global development banks.
Both leaders emphasised the need to tackle debt issues facing low- and middle-income countries and to improve the multilateral debt restructuring process.
Sri Lanka and Ghana defaulted on their international debts in 2022, roughly two years after Zambia defaulted. More than half of all low-income countries face debt distress, which hurts their long-term ability to function and develop.
The meetings of finance ministers and central bank governors will conclude on Tuesday.
A meeting of G20 finance chiefs in India’s technology hub of Bengaluru in February ended without a consensus, with Russia and China objecting to the description of the war in Ukraine in a final document.
Ms Yellen is back in India for the third time in nine months, following a recent trip to Beijing.
She reiterated the deepening ties between the two countries on Monday and said “the United States and India are among the closest partners in the world”.
Here's how the vibrant capital of #Gujarat is decked up to host the 3⃣rd Finance Ministers and Central Bank Governors Meeting where delegates will engage in discussions concerning crucial global economic issues.
🗓️ July 17-18
📍 Gandhinagar #G20India #FMCBG pic.twitter.com/C6jfpRXsq3— G20 India (@g20org) July 16, 2023
In a statement, she said the US was looking forward to working with India on an “investment platform to deliver a lower cost of capital and increased private investment to speed India’s energy transition”.
India’s longstanding relationship with Russia has also loomed as the Kremlin’s invasion of Ukraine continues despite US and allied countries’ efforts to sanction and economically bludgeon Russia’s economy.
The country has not taken part in the efforts to punish Russia and maintains energy trade with that country despite a Group of Seven-endorsed price cap on Russian oil, which has seen some success in slowing Russia’s economy.
Despite this, the US has increased ties with India and courted its leaders. US pesident Joe Biden hosted a White House state visit honouring Indian prime minister Narendra Modi in June, designed to highlight and foster their partnership.
The two leaders pronounced the US-India relationship never stronger and rolled out new business deals between the nations.
