Sitharaman on India's G20 presidency: Union Finance Minister Nirmala Sitharaman on Tuesday stated that India would push for international regulation of crypto assets to stop the funding of terrorism as well as coordinated efforts to deal with the effects of events in advanced economies under its G20 presidency.
She further highlighted eight areas for consideration during India's G20 presidency, which will start on December 1. These topics included multilateral institution changes and food and energy security.
Notably, India will succeed Indonesia as the head of the G20, an association of 20 developed and developing countries.
India to face numerous challenges during its G20 presidency
It will be assuming the presidency at a time when the world is experiencing numerous challenges due to the Russia-Ukraine conflict, rising crude oil prices, rising interest rates, and a slowdown in global demand.
"We are probably at a very comfortable stage in the sense of comparing with other economies, our macroeconomic fundamentals are fine," Sitharaman said. She also went on to say that emerging markets always face the collateral and unintended spillovers of happenings in developed countries.
She claimed that at the G20 summit, India consistently upheld its stance and voiced concerns of developing markets and low- and middle-income ones.
"Particularly at a time when we are also facing the collateral spillovers which are unintended ... How much countries like India or in the middle or low-income bracket or emerging markets can bear the brunt of spillovers? Can you at all be ready for unpredictable spillovers, and how much can you be ready? Therefore, discussions on spillovers will be a priority," Sitharaman said at ICRIER's G20 conference.
Warning of a recession in advanced economies, the IMF last month lowered global growth projections to 3.2 per cent for 2022 and 2.9 per cent for 2023.
WTO projects slow down in global trade
The World Trade Organisation (WTO) expects global trade growth to slow down to 1 per cent in 2023, from 3.5 per cent this year, due to global uncertainties.
To a question on whether sanctions imposed by the West on Russia have backfired, Sitharaman said they could be a part of 'spillover' discussions at the G20.
"That is what I thought I will be covering as a subject under the spillovers. So certainly, members will have to talk about it. Actions taken at the early stages of the Russia-Ukraine war, whether it sanctions on payments through the SWIFT, or subsequently on fuel trading ... You also have probabilities of newer such things coming in. So these are spillovers of decisions. Those will have to be definitely discussed," Sitharaman said.
Referring to issues associated with crypto assets, the finance minister said there is a need for global regulation to prevent their misuse for terror funding and money laundering.
"...how crypto assets can be regulated with all countries on board because no one single country can succeed individually, being in a silo and trying to regulate the crypto assets," she said.
The minister said concerted action is required so that the money trail is established and unregulated crypto assets are not used for drug funding, terror funding or gaming the system.
"That regulation cannot be successful if any one country does it. We have not come out with any plans as yet. So we need to have the members of G20 come on board to see what best needs to be done," she added.
Various international bodies are working on regulations for crypto assets and those have to brought on the table for a meaningful discussion at the G20, the minister said.
Sitharaman further said G20 member countries have come together and worked out a consensus on the issue of international taxation and hoped that under India's presidency, consensus would emerge on "few other issues which are very critically important".
The eight areas outlined by the minister for discussion at the G20 forum are -- financing Sustainable Development Goals (SDGs); reforms in multilateral financing institutions; debt distress faced by some countries; urban infrastructure; digital achievement of India; international taxation; regulation of crypto assets; and food and energy security.
She said there was a need for 'reigniting' the debate on meeting Sustainable Development Goals (SDGs) by 2030 for which countries are raising debts to finance their development.
"Can SDGs be reached by financing ourselves like that? That we end up not developing our resources or assets but more indebted and that kind of unsustainable way of attaining your development goals is something on which all of us will have to apply our mind," Sitharaman said.
With regard to reforms in multilateral funding institutions, she said they should work towards leveraging their endowments optimally.
"We have to understand how multilateral institutions, international financing institutions are going to be a better-reformed institution, going to serve with greater vigour, have they become fatigued out, do they have enough newer thoughts, are they looking at modern ways of leveraging their funds..? Multilateral financing institutions will be a matter of debate...," she added.
(With PTI inputs)
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