The resilience and vibrancy shown by Indian economy gives hope and optimism for the global economy which is going through tough times
Financial markets have been extremely volatile for quite some time across the globe. While, in many countries, strident and non-congruent policy responses of the central banks to unprecedentedly high inflation have caused volatility in the market, in a country like China, it is the real estate sector that continues to create vulnerability, and in Europe, it is the energy crisis that is contributing to fragilities in financial outlook. Similarly, in emerging economies, the ongoing spillovers from the Russia-Ukraine conflicts, rising interest rates spurred by inflation, supply-side crisis, weak fundamentals and large capital outflows which are pushing up the borrowing costs, have made things worse for them. In such a grim financial situation, the first meeting of Finance Ministers and Central Bank Governors under India's G20 Presidency becomes much sought after by the entire world.
India’s presidency designed the meeting in such a way, that a meaningful exchange of ideas among finance ministers and governors of the central banks could happen. It is also encouraging that some pragmatic and meaningful approaches were seen to be addressing some of the key global issues. Covering issues such as strengthening multilateral development banks to address shared global challenges of the 21st century, financing for resilient, inclusive and sustainable cities of tomorrow, and leveraging Digital Public Infrastructure for advancing financial inclusion and productivity gains, augur well for the global economy, which appears to be in a dire state.
It is also good to see that the meeting touched upon matters related to global health, international taxation and a few other vexing issues as well, as these discussions intend to provide a clear mandate for the various work-streams of the G20 Finance Track, which will further pursue the process. Moreover, discussions over subjects like digital public infrastructure, policy perspectives on crypto assets and the role of National Payment Systems in cross-border payments, also promise a lot with some common, affordable and scalable solutions to some of the daunting challenges being faced by G20 member countries.
Prime Minister Narendra Modi rightly underlined the challenges faced by the world and urged the financial leaders, who represent the global economy in one of the most difficult times, to come out with humane and inclusive solutions. It is sad that the global economy, which is already crippled by the Covid pandemic, again fell prey to rising geo-political tensions, supply chain crisis, sky-high inflation, food and energy crisis, unsustainable debt levels and the multilateral financial organizations not being resilient to reform themselves. It is now up to the custodians of the leading economies and monetary systems of the world to bring back stability, confidence and growth to the global economy.
Amid these global economic upheavals, the Indian economy has shown much vibrancy, and also optimism for the global economy. Even IMF has just said that the Indian economy will contribute 15% to the overall growth of the world economy. Here, constant progress on Sustainable Development Goals is also very much needed to withstand future challenges. Moreover, exploring and harnessing the power of technology without letting it be misused and abused, also becomes important, as it is the technology that is the greatest leveller and empowering element when it comes to governance, financial inclusion and ease of living.
(The writer is a senior journalist)
