Finance minister Nirmala Sitharaman on Monday said world economic recovery remains “slow and uneven” and medium-term growth prospects have weakened further, as she called for coordination at both global and domestic levels to ensure a swift rebound.
At a seminar on Strong, Sustainable, Balanced and Inclusive Growth in the Capital, Sitharaman said the New Delhi Declaration of G20 leaders in September underscored the urgency of adopting well-calibrated structural policies to bolster equitable growth and improve macroeconomic and financial stability.
She stressed that while India’s G20 presidency-which has “mainstreamed the concerns and aspirations of Global South”–is coming to an end this month, momentum must be maintained on the policy guidance offered by the New Delhi declaration. “Not only should we engage with G20 partners to take forward the outcomes, but we should also explore how best we can integrate these outcomes into India’s domestic policy-making process so that we can lead by example,” Sitharaman said.
The projected pace of global growth-3% for 2023 and 2024, according to the International Monetary Fund-is below the average of 3.8% in the two decades before the pandemic. India, however, will remain the world’s fastest-growing economy, clocking a growth rate of 6.3% in both this fiscal and the next, the IMF has said. G20 leaders will hold a virtual meeting on November 22, the last under India’s presidency. Brazil will take over the presidency from December.
Sitharaman said India has delivered a G20 presidency that has “provided clear policy directions for addressing the needs of the majority of the global population whose voices are often unheard in global multilateral forums”. “However, we still have work left to do,” she said. During its G20 presidency, India made concerted efforts to explore how technology can be leveraged for the benefit of all, mainly through the digital public infrastructures, Sitharaman said.
The New Delhi Declaration has focused on trade, the future of work and financial inclusion, which are “pivotal for stimulating global growth”, the minister said. Under India’s presidency, the G20 sought to better integrate micro, small and medium enterprises (MSMEs)-which account for 90% of world businesses, about 70% of employment and 50% of GDP–into international trade.
