G20 and India

1. Introduction

The Group of Twenty (G20) is the premier forum for international economic cooperation, bringing together the world’s major developed and emerging economies to address global economic, financial and developmental challenges. Established in 1999 in the aftermath of the Asian Financial Crisis, the G20 was elevated to the level of Heads of State and Government in 2008 following the Global Financial Crisis. Over the years, it has evolved from a forum focused primarily on macroeconomic coordination to a comprehensive platform addressing issues such as climate change, sustainable development, global health, food and energy security, digital transformation, artificial intelligence, anti-corruption and reform of global governance. G20 and India has become an important dimension of this evolving global platform.

The **G20 currently comprises 19 countries, the European Union (EU) and the African Union (AU), representing around 85% of global GDP, 75% of international trade and nearly two-thirds of the world’s population. Decisions are taken through consensus, making the G20 one of the most influential forums for shaping global economic and development policies. G20 and India Relations have gained particular importance because of India’s growing role in global economic and diplomatic affairs.

For India, the G20 is an important platform to promote the interests of the Global South, strengthen multilateral cooperation, advocate reforms in international institutions and advance priorities such as inclusive growth, digital public infrastructure, climate action, sustainable development and resilient global supply chains. India’s successful G20 Presidency in 2023 further enhanced its profile as a leading voice in global governance and international diplomacy. G20 Significance for India is therefore reflected in India’s efforts to promote inclusive development and strengthen its global leadership. G20 and India also provides an important platform for India to advance its economic, strategic and diplomatic interests.

2. Evolution, Structure and Membership of G20

Evolution of the G20

• Formation in 1999: The Group of Twenty (G20) was established in 1999 following the Asian Financial Crisis (1997–98). Initially, it functioned as a forum of Finance Ministers and Central Bank Governors to promote international financial stability, strengthen policy coordination and prevent future financial crises. G20 and India has since evolved into an important platform for India’s engagement with major global economies.
• Transformation after the Global Financial Crisis (2008): The Global Financial Crisis of 2008 highlighted the need for greater political coordination among major economies. Consequently, the G20 was elevated to the level of Heads of State and Government, and the first G20 Leaders’ Summit was held in Washington, D.C., in 2008.
• Premier Forum for International Economic Cooperation: At the Pittsburgh Summit (2009), the G20 was officially designated as the “Premier Forum for International Economic Cooperation”, replacing the G8 as the principal platform for addressing global economic issues. G20 and India Relations have become increasingly important within this wider framework of international economic cooperation.
• Expansion of Agenda: While the G20 initially focused on macroeconomic stability, financial regulation and international trade, its agenda has gradually expanded to include:
  • Climate change and energy transition
  • Sustainable Development Goals (SDGs)
  • Global health
  • Food and energy security
  • Digital economy and Artificial Intelligence
  • Disaster resilience
  • Anti-corruption
  • Reform of multilateral institutions
  • Global supply chains and critical minerals
• Growing Importance of the Global South: In recent years, the G20 has increasingly recognised the concerns of developing and emerging economies, including debt sustainability, climate finance, inclusive growth and equitable access to technology. The admission of the African Union as a permanent member in 2023 further strengthened the representation of the Global South within the forum. G20 Significance for India is also reflected in this growing recognition of developing and emerging economies.

Membership of the G20

The G20 consists of 21 members, comprising 19 countries and 2 regional organisations. G20 and India is an important part of this membership structure, with India being one of the 19 member countries.

Member Countries

• Argentina
• Australia
• Brazil
• Canada
• China
• France
• Germany
• India
• Indonesia
• Italy
• Japan
• Mexico
• Republic of Korea (South Korea)
• Russia
• Saudi Arabia
• South Africa
• Türkiye
• United Kingdom
• United States

Regional Organisations

• European Union (EU)
• African Union (AU) (Permanent member since 2023)

The G20 members collectively account for approximately:

• 85% of global GDP
• Around 75% of global trade
• Nearly two-thirds of the world’s population

Structure of the G20

The G20 is an informal forum without a permanent secretariat or legally binding charter. It functions through a flexible institutional framework based on consensus and annual rotating presidencies. G20 and India operates within this flexible structure, allowing India and other members to participate in discussions on major global economic and developmental issues.

G20 Presidency

The presidency rotates annually among member countries. The country holding the presidency sets the agenda, hosts meetings and coordinates negotiations throughout the year, culminating in the annual Leaders’ Summit. India and G20 gained particular significance during India’s presidency in 2023.

Troika System

To ensure continuity in the G20 agenda, the forum follows the Troika system, comprising:

• Previous Presidency
• Current Presidency
• Incoming Presidency

The 2025 Troika consists of:

• Brazil (Previous)
• South Africa (Current)
• United States (Incoming)

G20 and India continues to remain relevant to this system as India uses the G20 platform to advance its priorities on global governance, development and the interests of the Global South.

Sherpa Track

The Sherpa Track addresses non-financial issues and is coordinated by each country’s Sherpa (the leader’s personal representative). It covers areas such as:

• Agriculture
• Education
• Employment
• Health
• Climate change
• Environment
• Digital economy
• Tourism
• Anti-corruption
• Sustainable development

These areas are important to G20 and India, particularly in advancing India’s priorities related to inclusive development, sustainable growth and the Global South.

Finance Track

The Finance Track is led by Finance Ministers and Central Bank Governors. It focuses on:

• Global economic growth
• International financial architecture
• Financial stability
• International taxation
• Public debt
• Sustainable finance
• Multilateral Development Bank (MDB) reforms

G20 and India uses this track to engage with major economies on global economic stability, financial reforms and development financing.

Engagement Groups

The G20 engages civil society, academia, businesses and youth through specialised engagement groups, including:

• B20 (Business)
• C20 (Civil Society)
• T20 (Think Tanks)
• W20 (Women)
• Y20 (Youth)
• L20 (Labour)
• S20 (Science)
• U20 (Urban)
• Startup20
• P20 (Parliamentary Speakers)

These groups provide policy recommendations that enrich discussions and support inclusive decision-making within the G20. G20 and India also benefits from these engagement platforms by enabling wider participation in discussions on global economic and developmental issues.

3. India’s G20 Presidency (2023): Key Achievements

Adoption of the New Delhi Leaders’ Declaration (NDLD)

• Achieved consensus among all G20 members despite deep geopolitical differences, particularly over the Russia–Ukraine conflict.
• Reaffirmed commitment to strong, sustainable, balanced and inclusive global growth.
• Emphasised reform of multilateral institutions, sustainable development and digital transformation.
• Strengthened the voice of developing countries and the Global South. G20 and India gained greater international significance through the successful adoption of the declaration, while India G20 Presidency 2023 demonstrated India’s ability to build consensus among major economies.

African Union Became a Permanent Member

• India successfully secured the African Union’s admission as a permanent member of the G20.
• Expanded G20 membership from 20 to 21 members (19 countries + EU + AU).
• Enhanced the representation of Africa and the Global South in global decision-making.
• Reinforced India’s image as a champion of inclusive and representative global governance. G20 and India therefore gained further importance through India’s efforts to strengthen the voice of the Global South.

Launch of the Global Biofuels Alliance (GBA)

• Launched jointly by India, Brazil and the United States during the G20 Summit.
• Aims to promote sustainable biofuels, technology transfer and global cooperation in clean energy.
• Supports energy security, climate action and the transition towards low-carbon fuels.
• Positions India as a global leader in the biofuel economy. India G20 Presidency 2023 also highlighted India’s role in advancing practical cooperation on clean energy and sustainable development.

India–Middle East–Europe Economic Corridor (IMEC)

• Announcement of the India–Middle East–Europe Economic Corridor (IMEC) connecting India with Europe through the Middle East.
• Seeks to improve trade, logistics, digital connectivity and energy infrastructure.
• Expected to reduce transportation costs and diversify global supply chains.
• Enhances India’s strategic connectivity with West Asia and Europe. G20 and India therefore gained further significance through this initiative.

Promotion of Digital Public Infrastructure (DPI)

• India showcased its Digital Public Infrastructure (DPI) model, including Aadhaar, UPI, DigiLocker and CoWIN.
• G20 members recognised DPI as a tool for inclusive growth, financial inclusion and efficient public service delivery.
• Adoption of the G20 Framework for Systems of Digital Public Infrastructure to encourage voluntary international cooperation.
• Strengthened India’s reputation as a global leader in digital governance. G20 Significance for India is also reflected in India’s ability to showcase its digital public infrastructure model globally.

Green Development and Sustainable Development Initiatives

• Adoption of the G20 High-Level Principles on Lifestyles for Sustainable Development (Mission LiFE).
• Emphasised green development, renewable energy, climate resilience and sustainable consumption.
• Promoted sustainable financing and accelerated progress towards the Sustainable Development Goals (SDGs).
• Reaffirmed the importance of balancing economic growth with environmental sustainability. G20 and India further highlighted India’s approach towards sustainable development and climate action.

4. Latest G20 Summit (2025): Major Issues and Outcomes

Global Economy, Trade and Debt Sustainability

• Emphasised the need to strengthen global economic growth amid rising geopolitical tensions, inflationary pressures and supply chain disruptions.
• Discussed measures to improve the resilience of the global trading system and address increasing protectionism.
• Called for accelerating reforms in the Common Framework for Debt Treatment to assist debt-distressed developing countries.
• Reiterated the importance of strengthening Multilateral Development Banks (MDBs) to provide affordable finance for sustainable development. G20 and India remains important in addressing these global economic and developmental challenges.

Climate Finance, Energy Transition and Sustainable Development

• Reaffirmed commitment to achieving the goals of the Paris Agreement and advancing the global clean energy transition.
• Emphasised the need to mobilise adequate climate finance, particularly for developing countries.
• Promoted investment in renewable energy, green hydrogen, sustainable infrastructure and critical minerals.
• Highlighted the importance of ensuring a just, affordable and inclusive energy transition that takes into account the developmental needs of emerging economies. G20 and India continues to be significant in advancing India’s priorities on climate action and sustainable development.

Reform of Global Governance

• Discussions focused on making global institutions more inclusive, representative and effective.
• Reiterated the need for reforms in institutions such as the United Nations, IMF, World Bank and WTO to better reflect contemporary geopolitical and economic realities.
• Emphasised greater participation of developing countries and the Global South in global decision-making.
• Supported strengthening international cooperation to address transnational challenges through multilateralism. G20 and India continues to provide an important platform for India to advocate reforms in global governance. India and G20 also remains significant in promoting greater representation of developing countries.

Artificial Intelligence, Digital Economy and Emerging Technologies

• Recognised Artificial Intelligence (AI) as a transformative technology with significant opportunities as well as risks.
• Discussed the need for responsible, inclusive and human-centric AI governance.
• Emphasised bridging the digital divide, promoting secure digital infrastructure and enhancing international cooperation in digital innovation.
• Highlighted the growing importance of Digital Public Infrastructure (DPI), cybersecurity and data governance in promoting inclusive development. G20 and India provides an important platform for India to promote responsible AI governance and digital cooperation.

Food Security and Sustainable Development

• Reaffirmed commitment to achieving the Sustainable Development Goals (SDGs), particularly in the areas of poverty reduction, food security and nutrition.
• Discussed strengthening resilient agricultural systems, improving food supply chains and promoting climate-resilient agriculture.
• Called for increased investment in sustainable agriculture, innovation and technology to ensure long-term food security.
• Emphasised the need to accelerate progress towards the 2030 Agenda for Sustainable Development. G20 and India remains relevant in addressing food security and sustainable development challenges.

India’s Key Interventions

• Reiterated the importance of giving a stronger voice to the Global South in global governance.
• Advocated reforms of the United Nations, IMF, World Bank and other multilateral institutions.
• Highlighted India’s success in Digital Public Infrastructure (DPI) and encouraged its wider adoption for inclusive development.
• Emphasised responsible and ethical governance of Artificial Intelligence (AI) and promoted international cooperation in emerging technologies.
• Called for stronger collaboration on climate finance, critical minerals, resilient supply chains, healthcare and disaster resilience.
• Reaffirmed India’s commitment to inclusive growth, sustainable development and multilateral cooperation. G20 Significance for India is reflected in these interventions and India’s efforts to advance the priorities of the Global South.

5. Significance of G20 for India

Strengthening India’s Global Leadership and Voice of the Global South

The G20 has emerged as one of the most important platforms for India to strengthen its position as a leading global power and a credible representative of the Global South. Through active participation in the G20, India has consistently highlighted the concerns of developing countries on issues such as climate justice, sustainable development, food and energy security, debt sustainability and equitable access to technology. G20 and India therefore has growing importance for India’s global leadership.

During its G20 Presidency in 2023, India institutionalised this approach by organising the Voice of Global South Summit, which enabled developing countries to collectively articulate their priorities before the G20. India also played a pivotal role in securing the African Union’s permanent membership in the G20, thereby making global governance more representative and inclusive. These initiatives have enhanced India’s diplomatic stature, strengthened its leadership credentials and reinforced its image as a bridge between developed and developing countries. G20 and India Relations have therefore gained greater significance through India’s leadership of the Global South.

Promoting Economic Growth, Trade and Investment

The G20 plays a vital role in supporting India’s economic growth by facilitating cooperation on global trade, investment, financial stability and sustainable development financing. As the world’s largest economies collectively account for the majority of global GDP and trade, decisions taken within the G20 significantly influence the international economic environment. India benefits from discussions on global supply chains, investment flows, infrastructure financing, digital economy, international taxation and reforms of Multilateral Development Banks (MDBs). G20 and India therefore provides an important platform for advancing India’s economic interests, while G20 Significance for India is reflected in its role in promoting trade, investment and financial cooperation.

The announcement of the India–Middle East–Europe Economic Corridor (IMEC) during India’s G20 Presidency further strengthened India’s strategic connectivity with West Asia and Europe, creating new opportunities for trade, logistics and investment. Additionally, G20 cooperation supports India’s objective of becoming a global manufacturing hub, attracting foreign investment and integrating more deeply into global value chains.

Advancing Climate Action, Energy Security and Sustainable Development

The G20 provides India with an important platform to promote a balanced and equitable approach to climate action that recognises the developmental needs of emerging economies. India has consistently advocated the principles of climate justice and Common but Differentiated Responsibilities and Respective Capabilities (CBDR-RC) while calling for greater climate finance and technology transfer from developed countries. G20 and India therefore remains important for advancing India’s climate and sustainable development priorities.

Through initiatives such as Mission LiFE (Lifestyle for Environment) and the Global Biofuels Alliance, India has demonstrated its commitment to sustainable development and clean energy transition. The G20 also facilitates cooperation in areas such as renewable energy, green hydrogen, critical minerals, energy security and disaster resilience, enabling India to accelerate its transition towards a low-carbon economy while ensuring affordable and secure energy for its growing population.

Driving Digital Transformation, Innovation and Technology Cooperation

India has successfully utilised the G20 platform to showcase its achievements in Digital Public Infrastructure (DPI) and promote international cooperation in digital transformation. Initiatives such as Aadhaar, Unified Payments Interface (UPI), DigiLocker and CoWIN have demonstrated how digital technologies can improve financial inclusion, public service delivery and governance efficiency. During its G20 Presidency, India played a key role in the adoption of the G20 Framework for Systems of Digital Public Infrastructure, encouraging voluntary cooperation among member countries. The G20 also provides opportunities for collaboration in Artificial Intelligence (AI), cybersecurity, digital economy, innovation, semiconductor supply chains and emerging technologies, strengthening India’s ambition to become a global technology and innovation hub. G20 Significance for India is also evident in India’s growing role in digital transformation and technology cooperation.

Promoting Multilateralism and Reform of Global Governance

India considers the G20 an effective platform for promoting multilateralism and advocating reforms in global governance institutions to better reflect contemporary geopolitical and economic realities. India has consistently argued that institutions such as the United Nations, International Monetary Fund (IMF), World Bank and World Trade Organization (WTO) should become more representative, transparent and responsive to the needs of developing countries. G20 and India has therefore become an important part of India’s efforts to strengthen multilateral cooperation.

Through the G20, India has promoted consensus-based decision-making, inclusive development and greater participation of emerging economies in global institutions. By advocating reforms in international financial architecture, strengthening Multilateral Development Banks and promoting rules-based cooperation, the G20 supports India’s broader objective of building a more democratic, equitable and effective global governance system capable of addressing complex global challenges. G20 and India Relations are consequently important for India’s broader multilateral objectives.

6. Challenges before the G20

Geopolitical Conflicts and Strategic Rivalries

Increasing geopolitical tensions, particularly the Russia–Ukraine conflict, the West Asia crisis, and growing strategic competition among major powers such as the United States and China, have made it difficult for the G20 to build consensus on several global issues. These rivalries often shift the focus away from economic cooperation towards geopolitical disagreements, affecting the effectiveness of the forum. G20 and India must therefore navigate these differences while maintaining the forum’s focus on economic and developmental cooperation.

Consensus-Based Decision Making

The G20 follows a consensus-based decision-making process without any voting mechanism. While this promotes inclusiveness, it also makes decision-making slow and difficult, especially when member countries have divergent political, economic and strategic interests. Consequently, negotiations on sensitive issues often result in broad compromises rather than decisive policy outcomes. G20 and India must therefore work towards building consensus while protecting India’s national interests.

Climate Finance and the Development Divide

Developing countries continue to emphasise the principle of Common but Differentiated Responsibilities and Respective Capabilities (CBDR-RC), while developed countries seek stronger climate commitments from all major economies. Differences over climate finance, technology transfer, carbon mitigation targets and adaptation funding remain significant challenges for the G20 in achieving consensus on global climate action. G20 Challenges and Opportunities for India are particularly relevant in balancing India’s developmental requirements with its global climate commitments.

Rising Global Debt and Economic Uncertainty

Many developing and low-income countries are facing high external debt, inflation, slowing economic growth and financial vulnerabilities. Although the G20 has initiated debt relief mechanisms, progress has been slow due to differences among creditor countries and financial institutions. Addressing global debt sustainability while ensuring adequate development financing remains a major challenge. G20 and India must therefore support greater cooperation on debt sustainability and development financing.

Implementation Deficit

Although G20 Summits produce important declarations and policy commitments, the forum lacks a permanent secretariat and legally binding enforcement mechanisms. As a result, implementation depends entirely on the political will of member countries. This often leads to delays or uneven implementation of agreed commitments, reducing the overall effectiveness and credibility of the G20. G20 Challenges and Opportunities for India therefore include ensuring that G20 commitments translate into meaningful and timely action.

7. Way Forward

• Strengthen Multilateralism: Promote consensus-based cooperation and reform global institutions to make them more representative and effective. G20 and India should continue to support a more inclusive and balanced global governance system.
• Accelerate Implementation: Establish stronger monitoring mechanisms to ensure timely implementation of G20 commitments.
• Enhance Support for the Global South: Increase climate finance, technology transfer and development assistance for developing countries.
• Promote Inclusive and Sustainable Growth: Focus on resilient supply chains, digital inclusion, food security and green development.
• Strengthen Cooperation on Emerging Challenges: Enhance collaboration on Artificial Intelligence, cybersecurity, global health, energy security and disaster resilience.

8. Conclusion

The G20 has evolved into the world’s premier forum for addressing global economic and developmental challenges through consensus-based multilateral cooperation. For India, it serves as a vital platform to advance the interests of the Global South, promote inclusive and sustainable development, strengthen digital and climate leadership, and advocate reforms in global governance institutions. As global challenges become increasingly interconnected, an effective, inclusive and action-oriented G20 will remain crucial for fostering international stability, sustainable growth and shared prosperity. G20 and India will continue to remain important for India’s role in global governance, while India and G20 will provide opportunities to advance India’s economic and diplomatic interests.

BPSC Mains Practice Questions

1. Examine the significance of the G20 for India. Discuss how the G20 has strengthened India’s global leadership, economic interests and role in promoting the concerns of the Global South.

2. The G20 has emerged as the premier forum for international economic cooperation, yet it faces several challenges in addressing contemporary global issues. Critically analyse the major challenges before the G20 and suggest measures to enhance its effectiveness.

Learn More from the Ministry of External Affairs, Government of India

Readers interested in G20 and India, G20 and India Relations, India G20 Presidency 2023, India’s role in the G20, global governance, Global South cooperation and India’s major G20 initiatives can visit the official website of the Ministry of External Affairs (MEA), Government of India. The MEA provides authentic information on India’s participation in the G20, major diplomatic initiatives, summit outcomes and India’s engagement with global institutions.