Trade reforms, new economic corridor to global taxation and Crypto assets: Key outcomes, takeaways from G20 Summit as it concludes under PM Modi's leadership

Produced by: Harshita
Designed by: Manoj Kumar

Prime Minister Narendra Modi, who led the two-day G20 Leaders' Summit 2023, has announced the conclusion of the mega event.  PM Modi congratulated Brazilian President Luiz Inácio Lula da Silva as he handed over the presidency. As the G20 Summit concludes, watch the key takeaways and outcomes of the Summit.

G20 Summit concludes

PM Narendra Modi on Saturday launched the Global Biofuel Alliance to boost the use of cleaner fuels. India has been pushing the idea of setting up a Global Biofuels Alliance to help accelerate energy transition. "We are launching the Global Biofuel Alliance. India invites all of you to join this initiative," PM Modi said in his remarks to leaders from the Group of 20 major economies at the summit.

Global Biofuel Alliance launched

Adopting the New Delhi Declaration has brought start-ups and MSMEs to the forefront. The New Delhi Leaders' Declaration highlighted how they are the key drivers of innovation and job creation, leading to socio-economic transformation. “We welcome the establishment of the Startup 20 Engagement Group during India’s G20 Presidency and its continuation,” the Declaration read. G20 nations will commit to promoting digital technology by farmers and put special emphasis on agritech start-ups and MSMEs.

G20 Summit brings MSMEs, startups to forefront

Continue viewing BT Visual Story

Catch the latest business news, share market updates, expert analysis and exclusives only on BTTV.in

Watch BTTV

Click Here

G20 members agreed on the need for better, bigger, and more effective Multilateral Development Banks (MDBs). G20 Independent expert group of strengthening MDBs has submitted its Volume 1. The member countries have also agreed to collectively work with the World Bank to boost the world economy. An independent panel on capital adequacy framework (CAF) has recommended supporting reforms of MDBs. "The roadmap estimates that implementation of CAF will yield additional lending of $200 billion over the next decade," said Finance Minister Nirmala Sitharaman.

Strengthening MDBs

G20 leaders welcomed the IMF-FSB Synthesis Paper on crypto asset regulations. The 'New Delhi Declaration', which was adopted on Saturday states that G20 countries continue to closely monitor the risks of the fast-paced developments in the crypto asset ecosystem. The presidency will support the IMF which is setting the contours of the regulatory framework for crypto assets. "We endorse the Financial Stability Board’s (FSB's) high-level recommendations for the regulation, supervision, and oversight of crypto-assets activities and markets and of global stablecoin arrangements," said FM Nirmala Sitharaman.

Crypto asset ecosystem

In the global taxation area, G20 member countries made substantial progress on two-pillar solutions. The 'New Delhi Declaration' stated that G20 members remained committed to the swift implementation of the two-pillar international tax package. G20 leaders agree to swiftly implement global tax reforms, which entail a framework on digital economy taxation and a global minimum corporate tax rate. Progress has been made on one of the key components of the global tax reform, including the delivery of a text of a Multilateral Convention (MLC). This multilateral tax document is expected to be ready by the second half of 2023.

Global taxation

Promoting resilient growth by urgently and effectively addressing debt vulnerabilities in developing countries as well as improving access to digital services and digital public infrastructure, and leveraging digital transformation opportunities to boost sustainable and inclusive growth were other key outcomes of the finance track that made it to the 'G20 New Delhi Leaders’ Declaration'. G20 nations have committed to promote faster, transparent, and inclusive cross-border payments.

Cross-border payments

Prime Minister Narendra Modi announced India-Middle East-Europe Economic Corridor (IMEE-EC), a new economic corridor to counter China’s One Belt, One Road (OBOR). In a session co-chaired with US President Joe Biden, PM Modi said the proposed corridor would emerge as an effective means of economic integration between India, West Asia and Europe. The project will also involve investments in a new railway line in Africa stretching all the way from a port in Angola to the Democratic Republic of Congo and Zambia, all the way to the Indian Ocean on the other side of the continent.

New Economic Corridor to connect India, Middle East and Europe

G20 member countries have agreed to support policies that would enable trade and investment to serve as an engine of growth and prosperity for all. G20 Framework for Systems of Digital Public Infrastructure, Creation of a Global Digital Public Infrastructure Repository are among other key outcomes of the Summit. G20 leaders have committed to WTO reforms, and to have a fully functional dispute settlement system by 2024.

G20 Summit 2023: Trade
reforms