Why G20 Matters To India And The World

Economic, demographic, and commercial factors are driving India’s outreach. Advancing the Global South agenda may prove to be its enduring legacy

India is about to host the most consequential international conference in its independent history. For the first time, leaders of the world's major countries representing almost 80% of the world's economy and 60% of the global population-will convene in India for the G20 Summit. Counting regular attendees, invited guests, and members of the European Union (a G20 participant), the summit will represent 50 countries accounting for almost 90% of the global economy and 70% of the world's population.

The G20 Summit comes at a particularly crucial moment for the country. India currently has the highest economic growth rates of any summit participant (5.9%), slightly ahead of guest Bangladesh (5.5%), China (5.2%), and Indonesia (5%), according to the latest International Monetary Fund estimates. Its post-pandemic economic recovery also reflected a certain prudence: Government debt increased by only 8% of gross domestic product (GDP) over the past four years compared to 22% in China, Japan, and the United Kingdom (UK). At the same time, the objectives of increasing employment, managing inflation, and reducing the current account deficit (of which India's is the third largest among G20 countries, after the United States and the UK) remain priorities. The focus on boosting domestic manufacturing and exports (Atmanirbhar Bharat or selfreliant India) is intended to address these simultaneous challenges.

Demographics certainly help. This year, India's population surpassed that of China. In fact, India now has the largest population of any country in human history, more than twice that of the British Empire at its peak.