Experts believe India’s G20 Presidency is proving beneficial for it’s trade relations and helping the nation attract lucrative investments from member countries. The G20 (Group of 20) collectively represents about 85 per cent of the world’s GDP (Gross Domestic Product), 75 per cent of global trade, and about two-thirds of the global population. Therefore, experts believe the G20 is playing a pivotal role in helping India secure it’s future economic growth.
Further, market experts noted that this summit will help India enhance it’s trade relations by fast-tracking negotiations regarding free trade agreements (FTAs), facilitating ease of doing business, and developing modern infrastructure, and skilled manpower, among other factors, reported PTI.
The G20 comprises 19 countries, namely Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, the Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkiye, the UK, the US, and the European Union.
The report noted that market experts have recommended the government to take ahead the negotiations for FTAs with nations like the UK and EU, but they have cautioned against mixing climate aspirations with the trade platform. Notably, the EU will implement the Carbon Border Adjustment Mechanism from October 1 this year, making exports costly for countries like India. So far in 2023, the EU has already introduced five norms on climate change and trade. However, experts have warned that trade discussions should bypass these concerns.
Shardul S Shroff, executive chairman at Shardul Amarchand Mangaldas & Co, urged India to figure out a common field with G20 members to become the global trendsetter for the digital economy and use this status to strengthen it’s IT and IT-enabled services exports, the report noted. Shroff added, “India should position itself as the global norm-setter for various aspects of the digital economy, such as data protection, international contracting, digital assets, and international taxation, as it would help expand India’s footprint in the global services exports market.”
Another expert Gaurav Dani, founding partner at INDUSLAW, noted that India will remain attractive to global firms due to it’s largest growing middle-income population which provides a healthy consumer base for goods and services.
The report quoted Sharad Kumar Saraf, chairman of Technocraft Industries, and pointed out that India hosting multiple events for the G20 forum will help build the members’ trust in India’s capabilities and help trade. “This helped in showcasing the country as a whole. The G20 Presidency has thrown up many opportunities in diverse sectors for India. It is now for India to grab this opportunity. India should consider converting G20 in an economic block, a shade lower than free trade, maybe, reduced customs duties among the group members,” added Saraf.
Currently, among the G20 members, India is ranked ninth in terms of total trade in goods and services, worth $1,662 billion in 2022. While the EU leads the ranking with $17,151 billion worth of trade, China and the US occupy the second and third positions with $7,183 billion and $6,933 billion worth of trade, respectively.
The report added that G20 nations contributed 64 per cent to India’s merchandise exports in 2022, and 52.4 per cent to it’s imports. The major export destinations for India among the G20 group are the US, with $91 billion in exports, followed by the EU, with $87 billion in exports, and China, with $17.5 billion in exports.
Among exports, the sectors taking the lead for India in 2022 included electronics and machinery, petroleum products, and cut and polished diamonds and gold jewellery. Major imports included electronics, machinery, petroleum products, and organic chemicals, among others.
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