Hello and welcome to Moneycontrol’s latest Policy Next summit on India’s G20 Presidency. The day-long event evaluated India’s presidency at the G20, the issues that are crucial to India, and the road ahead by “Reimagining India’s global opportunity with Atmanirbhar Bharat’s leading voices”.
The live blog session has concluded. For more news, views and updates, stay tuned withMoneycontrol.com.
G20 Presidency Policy Next Live: Old habits die hard: Shamika Ravi on Moody's report citing Manipur riots
“The number of riots in India has been falling. Though Manipur is not an isolated issue, it is a structural issue related to aspects like land.”
“I used to think there is nothing called Western press. There is good and bad press. But now I feel it is being bankrolled. The best bet is to take support in data because it is relatively more objective.”
G20 Presidency Policy Next Live: Shamika Ravi on India growth story
-- 13.5 crore people have come out of multidimensional poverty in the last five years and that is no mean feat
-- As many as 56 ministries using DBT in some form or the other
-- Globally, people expected a humanitarian crisis in India due to the pandemic, but the govt, industry, and society came together, leading to a very different outcome
-- Upward revision of India’s GDP growth is not surprising either. India has grown at 6-7 percent before as well, but we have never grown at this level in the midst of a global slowdown. Therefore, there is all the more reason for optimism.
G20 Presidency Policy Next Live: Shamika Ravi on data sampling in India
Shamika Ravi says currently, the debate in India around data now is on sampling. The frequency of surveys for data collection has been increased. However, the quality of data is key to making policies on poverty, and jobs, among others.”
“Over the last 10 years, all surveys we have done have had a rural bias as we are benchmarking ourselves to the 2011 census.”
“India now is in the realm of precision policy making, no longer in the realm of national policy making. We currently wait for years to get certain data available. Mospi alone doesn't collect data, it is collected by ministers too. We have to make our policies more responsible to ensure better data.”
G20 Presidency Policy Next Live: We are looking very closely at states' debt management, says Ravi
Shamika Ravi says the Centre is looking very closely at states' debt management, especially on the source of funding for freebies.
Punjab seeing deindustrialisation on policies to appease some entrenched groups is problematic, she says and adds that states going back to the old pension scheme is not feasible either because funds could move away from larger development requirements.
While Chhattisgarh and Odisha are managing administration well, trends in states like West Bengal and Punjab are troubling, she points out.
G20 Presidency Policy Next Live: Shamika Ravi on the India growth story
Shamika Ravi speaks on the India growth story, says: “It is only a matter of time before India realises mantra for long term growth.”
She explains, “India is more resilient to pandemic-like shocks because we have DBT and JAM architectures in place…”
However, she says though food security is the key concern, we are over it. Currently, it is only on the distribution front that we see seasonal shocks. “Distribution policy is not entirely smooth hence we need some cushioning,” Ravi says.
“This is the reason we wanted to implement farm laws that were withdrawn to help farmers get the benefit of a situation like now.”
Further, she points out that not all inflation is bad. “Certain kinds of inflation also lead to redistribution in the economy. For instance, farmers’ income is far more stable today, and there are fewer fluctuations.”
G20 Presidency Policy Next Live: India's G20 presidency has become a mass movement, says Ravi
Shamika Ravi says India's G20 presidency has become a mass movement. A lot of the Global South is backing India because of our G20 priorities, she adds.
Ravi also points out that the opportunity cost for India to go green is higher vs most of the G20 participant nations and there is now acknowledgement that we cannot grow like the OECD countries grew. “We need behavioural changes to ensure quality of life including green energy, recycling because it cannot be about GDP alone.”
G20 Presidency Policy Next Live: ‘India's G20 priority of women-led development has faced some constraints’
Shamika Ravi, Member, Prime Minister’s Economic Advisory Council and Secretary, Government of India speaks on India’s G20 presidency, says “India's G20 priority of women-leddevelopment has faced some constraints.”
G20 Presidency Policy Next Live: G20 has become a people's movement for the first time: Shamika Ravi on India’s G20 presidency
Shamika Ravi, Member, Prime Minister’s Economic Advisory Council and Secretary, Government of India speaks on India’s G20 presidency.
She says: “G20 has become a people's movement for the first time. India's aim for the presidency is to represent the voice of the Global South.
The biggest concern of a platform like G20 is everyone has veto power. It is about building consensus in a fractured world.
Issues India would like to mainstream in the G20 presidency will stay for the next few years.
We finally have a new model for global development. We are talking about globalizing DBT. Welfare is now being done via direct contact between the state and the citizen. Growth is so much more than government. Aadhaar was once an initiative and has now been universalized.
Concern in G20 has been moving on the climate change issue. A lot of the issues like climate have to be treated like family and which family does not have fractures. Movement on climate change will be visible in two to three weeks in the G20 leaders’ summit.”
G20 Presidency Policy Next Live: NPCI’s Praveena Rai on UPI
“DPI's design principles need to have a healthy, vibrant ecosystem connecting to it. Our research on UPI tells us that it is word of mouth that brings people to the platform.”
Commenting on UPI being a duopoly, Rai said: “The architecture is very open. There are more than 50+ apps on UPI.”
G20 Presidency Policy Next Live: Panellists discuss taking lessons from UPI. Here’s who said what:
Rahul Handa, Executive Vice President - Strategic Initiatives, ONDC: “If UPI didn’t exist, we would not have had the reason to exist…. There has been a certain kind of resistance on being interoperable….”
Arvind Gupta, Founder Member, ISpirit: “ONDC is building on UPI's success.”
Pramod Varma, Former Chief Architect Aadhaar & India Stack: “DPI's thinking was not meant to solve. Aadhaar was meant to open up access, it was not meant to solve problems.”
G20 Presidency Policy Next Live: ‘India seems to be the only country championing DPI’
Arvind Gupta, Founder Member, ISpirit, says: “G20 has put DPI at the centerstage of discussion globally. But we have not yet solved a few percentages of problems. India seems to be the only country championing DPI. Lots of other countries have to take it up.”
G20 Presidency Policy Next Live: Praveena Rai of NPCI speaks on DPI
When we look at the various components of DPI, each has a very specific role. Identity combines with e-sign, andDigilocker; payments operate parallelly.
G20 Presidency Policy Next Live: India demonstrated how to combine inclusion & innovation agenda by taking DPI approach: Pramod Varma
Pramod Varma, Former Chief Architect Aadhaar & India Stack, said: “The idea of DPI differs from the earlier digitising agenda. We found a balance with what the govt can do and what the market can do.
For the first time, India demonstrated that we can combine inclusion agenda and innovation agenda if we take the DPI approach. IT is not just technology, it's a way of thinking. So, DPI has an exponential impact, not a linear impact, be it Aadhaar or UPI or anything else.”
G20 Presidency Policy Next Live: Crypto adoption is here to stay, says Kiran Mysore
Kiran Mysore Vivekananda says “adoption of crypto is here to stay, regardless of whether the government likes it or not”.
“In today's situation, 80% of India's volume is now underground business. It is not happening directly because it is all going to foreign exchanges. As much as 20 percent of active users in five foreign exchanges are Indians.”
“One of the best outcomes of G20 would be to get global cooperation to regulate crypto assets.”
G20 Presidency Policy Next Live: Bharat Web 3 Association Chairman Dilip Chenoy speaks on Web3 ecosystem, funding in the sector
“Virtual digital assets are a small part of the Web3 ecosystem but is getting heightened interest because of multiple reasons.
There are 900 startups in the Indian ecosystem covering various aspects of blockchain, including decentralised finance, tax and audit companies.
There is a misconception today that the Web3 ecosystem is not being funded. Very recently, a study found that Web3 was getting more than e-commerce and other sectors.
In fact, there now exists a new class of investors; many Indians joined the Bitcoin mining process and added to their wealth.
All that noise that is being generated by crypto -- the danger that we face, is that if we create an aura of uncertainty around crypto, the company that is actually working in the Web3 phase, will all relocate to Delaware, Dublin, Dubai, and Singapore.”
G20 Presidency Policy Next Live: ASG Balbir Singh backs tax on digital assets, says it accords de-facto recognition
Speaking about tax on digital assets, Balbir Singh, Additional Solicitor General, said, “The good side of this tax is that it gives de-facto recognition and legitimacy to digital assets.”
He said: “G20 is a great platform where there can be consensus with regard to certain digital assets,” and added: “Given the nature of asset we are talking about, which is boundaryless today, I believe G20 is a great multilateral platform where there can be certain consensus regarding certain digital assets.”
Any class of asset needs to have certainty to thrive as a business class of asset; this needs to come from a regulatory arrangement. Based on consensus that can be arrived at, it can then be converted into domestic laws in the respective countries, Singh explained.
G20 Presidency Policy Next Live: Been tough 12 months for crypto industry, says CoinCDX CPO
Kiran Mysore Vivekananda, Chief Policy Officer, CoinCDX, says: “It has been a very tough 12 months for the crypto industry in particular. Crypto has been left out and not been given any kind of support.”
Vivekananda pointed out that changes have been made to the regulations and in the past year, 80 percent of volumes in Indian exchanges have gone down.
“Data also shows that in the last year, close to 1,200 crores of Indian money has flown into foreign exchanges. Indian exchanges are finding it very difficult.”
Explaining why this is happening, he said: “Foreign exchanges provide these Indian consumers to invest in crypto without deduction of TDS.”
“We believe that to evade tax, and also because, the foreign exchanges provide seamless transaction -- whereas for us, we are finding it very difficult because of a shadow ban; Overall, it has been a very tough 12 for the Indian exchanges.”
G20 Presidency Policy Next Live: No master plan in India tackles climate, environmental concerns, says Neha Kumar
Neha Kumar, Head of South Asia Programme, Climate Bonds Initiative, said that Mumbai has made a climate plan that has nothing to do with the master plan for the city
She said: “…. We have not improved the quality of living in urban areas. No master plan in India has addressed climate or environmental concerns. Mumbai has made a climate action plan, but it has nothing to do with the city's master plan.”
G20 Presidency Policy Next Live: Madhav Raman stresses on need to stabilise de-ruralisation
Madhav Raman, Principal and Co-Founder, Anagram Architects, says green bonds issued by municipal bodies can look at issues of de-ruralisation locally…. Large villages are now becoming small cities. There is a need to stabilise de-ruralisation. A lot of resilience is needed.
"Municipalities are fighting for state funding. Only 30 percent cities are actually covered by the master plan," Raman said.
He added: “The G20 presidency should be taken in a spirit such as how we handle de-ruralisation and urbanisation.”
G20 Presidency Policy Next Live: ‘Private investment will flow if projects are commercially viable'
Arjun Dutt, Senior Programme Lead, Council on Energy, Environment and Water (CEEW), says that money will readily flow for projects that are commercially viable. He said: “Private investment depends on the viability of the projects. The money would readily flow into commercially viable infrastructure projects.
Dutt added: “Cities, if looking for international investors, need to address governance, in particular, transparency and disclosures when it comes to the issuance of green bonds at a municipal level.”
G20 Presidency Policy Next Live: Municipal, green bon
ds can help raise money for public projects, says Neha Kumar
Neha Kumar, Head, South Asia Programme, Climate Bonds Initiative, said at the summit that structurally, cities are not empowered enough to raise financial resources. She added that municipal bonds and green bonds are, however, a fine way to raise money for public projects.
She further spoke about how in the last eight to 10 years, extreme weather events have increased by around 200 percent due to climate change.
G20 Presidency Policy Next Live: India is fairly cost-competitive
Somnath Mukherjee says, "I won't be surprised if services exports reach merchandise exports in the next few years with companies setting up shop in India instead of outsourcing it to India. In services, it's not just about cost. India is fairly cost-competitive and one of the few countries that can offer scale. India's range of services is actually world-class. India's financial services have been world-class for a long time. America did not have online stock trading until recently. We introduced it in the 90s."
G20 Presidency Policy Next Live: FTAs are no longer exclusively about trade but many aspects
Abhijit Das tells us that the WTO agreement itself has an inbuilt provision that allows countries to get into FTAs. "Perception was that FTAs or bilateral deals would be a stepping stone to greater trade liberalisation. However, non-exclusivity (w.r.t trade) is restricting FTAs as aspects such as labour, environment, and gender are also in play. And those if we are not careful can have impact on our own trade and growth."
G20 Presidency Policy Next Live: India's PLI program focused on ensuring manufacturing in India
Jason Oxman points out that India's PLI program is very focused on ensuring manufacturing in India. "India has been successful regarding mobile phones; Apple has come to India. Now it is moving to broader regions like laptops and PCs." He also touches on India's digitisation and data flows. "On both digital and physical side, programs are helping to develop in India. It is important to look at programmes outside of FTAs to ensure multilateral opportunities."
G20 Presidency Policy Next Live: Depreciation of Rupee not worrisome
Somnath Mukherjee says, "Depreciation in Indian currency is similar to others. Nothing we need to be terribly bothered about. I don't think we need to be bothered about how many FTAs we sign as market access remains restricted. There are many otherspheres to work in."
G20 Presidency Policy Next Live: Matter of 4-5 years for Indian exports to surge
Abhijit Das, Former head of Centre for WTO studies of IIFT feels that India's road to expanding or reaching the export market is actually through the hinterland. He believes infra deficiency and logistics costs which make exports competitive to the global market constrain our exports thereby preventing other countries from choosing Indian goods. However, he also adds that the government is very conscious of it. He says, "It is a matter of 4-5 years when Indian exports will really surge. The surge whichwe see then will be much more than what we may see through FTAs and market accesses we get."
G20 Presidency Policy Next Live: The time for India is now and it is exciting
Jason Oxman, CEO and President of ITI Council believes the time for India is now and it is exciting. He says, "The digitisation story is nothing short of miraculous. This is going to power India towards the goal of being a $1 trillion economy. Opportunity is absolutely limitless. They are also focusing on the physical manufacturing of goods which will further power it. The UPI is giving access to millions of people who never had it before. Education, workforce development, and access to healthcare are all moving ahead. We also see the focus on India's partners around the world during B20 and G20."
G20 Presidency Policy Next Live: There's no alternative to the dollar
Somnath Mukherjee, Managing Partner and CIO, ASK Advisors says believes there's no alternative to the dollar. He says, "It (the US Dollar) remains the primary currency for trade, finance and all other transactions. The reason for that is that the US is not only the largest economy in the world with 25% GDP but also a financial system which is at a much bigger run."
G20 Presidency Policy Next Live: De-globalisation is not very new
Head of theCentre for WTO Studies, IIFT, Abhijit Das says believes the current 'de-globalisation' is not very new. He says, "History is repeating. Once the equation between US and China comes to equilibrium, the storms will abate."
G20 Presidency Policy Next Live: 10 states can push Indian economy to grow at 10%: G20 Sherpa Amitabh Kant
States have to play a bigger role for India to achieve high levels of growth, G20 Sherpa Amitabh Kant said at Moneycontrol's Policy Next on August 25.
India has the potential to grow at 10 percent, if 10 states clock in a GSDP growth of 10 percent each, Kant said. "We will see the golden period of India's growth with the private sector expected to invest more and more going ahead."
G20 Presidency Policy Next Live: Panel Discussion Coming Up
Trade Talks- Unlocking a De-Globalised World
Abhijit Das, Head, Centre for WTO Studies, IIFT
Richard McCallum, CEO, UKIBC
Somnath Mukherjee, Managing Partner and CIO, ASK Advisors
Jason Oxman, CEO and President, ITI Council
G20 Presidency Policy Next Live: private sector investment to bring golden period for India's growth
Kant believes it is important to get into sunrise areas of growth, namely, battery storage, and electric mobility. "India will make a quantum jump in mobile manufacturing. India's banks and corporates have a very good balance sheet. You will see a golden period of India's growth with the private sector investing more and more going ahead," he says. He also adds that, with GST, and the broadening of IBC laws, among others, India has made massive changes to push ease of doing business.
G20 Presidency Policy Next Live: As a key player in global growth, India's voice carries weight
"India's focus at the G20 summit includes sustainable growth, education, climate action, restructuring multilateral agencies, women-led development, and digital public infrastructure. As a key player in global growth, India's voice carries weight and it has been able to achieve consensus on many issues. India is poised to emerge as a leader of the global South and a major technological leader," says Kant.
G20 Presidency Policy Next Live: Great believer of free trade
"I am a great believer of free trade, India is a believer in free trade," says Kant. However, Kant believes that India has to focus on manufacturing whereas some policies have to focus to push for manufacturing.
G20 Presidency Policy Next Live: Important for India to focus on the global South
Two thirds of global growth is expected to come from the global South in the next two decades, so resources should flow into that region. Therefore, it is important for India to focus on the global South, saysAmitabh Kant
G20 Presidency Policy Next Live: India's G20 priority important for the world, says India’s G20 Sherpa
Amitabh Kant, India’s G20 Sherpa tells us that the toughest moments in G20 Presidency is negotiating leaders' declaration with all participating countries. He, however, adds that India's G20 priority important for the world. "India is the voice of the global south," says Kant.
G20 Presidency Policy Next Live: How India's crypto fight could bear fruit at G20 Leaders' Summit
India has been looking to build a global consensus on crypto regulations. While the risks from crypto are being increasingly understood, the next one-and-a-half months will be key in determining whether India's crypto focus will bear fruit during its Presidency. Moneycontrol explains, read here
G20 Presidency Policy Next Live: India’s digital payments story and brief chat with Shamika Ravi
The concluding session of the summit will be headlined by Shamika Ravi, a member of the Economic Advisory Council to the Prime Minister. Continuing from the panel discussion on India’s digital payments story, Ravi will speak on the less the world can take from India’s success with Direct Benefit Transfers. Her address will be followed by a fireside chat.
G20 Presidency Policy Next Live: India’s digital infrastructure leap and its influence on the world
From payment and wallet companies giving cashbacks to attract customers to countries linking their fast-payment systems to Unified Payments Interface – or UPI – India’s digital payment revolution has come a long way. Countries from across the world are seemingly lining up to collaborate with India and transform retail cross-border payments – to begin with. In the final panel discussion, we will take a look at India’s digital infrastructure leap and how its influencing the world.
G20 Presidency Policy Next Live: What is the future for the crypto firms?
From urban renewal and climate financing, we will quickly move on to the global crypto landscape, which is effectively being reshaped by India’s push for minimum international regulations. India, and the Reserve Bank of India in particular, has been vociferous in its opposition to crypto. But before rolling out any laws, the government has looked to create a global consensus on the issue given the cross-border nature of crypto. With discussions among G20 members progressing, what is the future for the crypto firms?
G20 Presidency Policy Next Live: World Bank must amend vision to look beyond poverty, says President Ajay Banga
The World Bank must make changes to its vision so that it can look at issues beyond poverty, President Ajay Banga has said.
On July 16, prior to the third meeting of the G20 Finance Ministers and Central Bank Governors in Gandhinagar, Banga expressed concern about the narrow definition of poverty.
"I have been six weeks in this job and I think what I am concerned about is that the definition of trying to eradicate poverty is inadequate without including challenges like climate change, pandemics, fragility, food insecurity – these are intertwined crises," Banga. Read here in detail.
G20 Presidency Policy Next Live: Sustainable urban renewal and climate financing
The panel discussion on trade will be followed by one on sustainable urban renewal and climate financing. In a side-event ahead of the third meeting of G20 Finance Ministers and Central Bank Governors in Gandhinagar last month, World Bank President Ajay Banga had called for developing cities that are not just inclusive but also useful to live in. Banga had also underscored the importance of municipal financing and upgrade ageing infrastructure in existing cities.
G20 Presidency Policy Next Live: Will services trade now headline India’s transactional relations with other countries?
Post lunch, the first panel discussion titled ‘Trade Talks: Unlocking a De-Globalised World’ shall commence. The coronavirus pandemic exposed fault lines in global supply chains and highlighted the reliance on a few countries. The reaction, including India’s, has been to boost domestic production capabilities.
G20 Presidency Policy Next Live: A lot is lined up!
Kicking off the proceedings will be Amitabh Kant, the G20 Sherpa, who will deliver the keynote address. Kant’s address will be followed by a fireside chat.
G20 Presidency Policy Next Live: India releases Chair Summary, joint statement unlikely before Leaders' Summit
After the third meeting of G20 Finance Ministers and Central Bank Governors (FMCBG) on July 18, India once again released a Chair Summary and Outcome Document. A joint statement, or communique, seems unlikely before the Leaders' Summit in September.
Finance Minister Nirmala Sitharaman said at the Presidency briefing in Gandhinagar that the Chair Summary was needed due to the lack of a common language on the Russia-Ukraine war. Read more, here
G20 Presidency Policy Next Live: G20 Leaders’ Summit coming soon
The Policy Next summit on India’s G20 Presidency comes a fortnight before New Delhi hosts the G20 Leaders’ Summit. The two-day conference of national leaders will be India’s last chance to reach a consensus on a joint statement under its Presidency. This yearhas been marred by disagreements on the language used to characterise Russia’s invasion of Ukraine and its impact on the global economy.
G20 Presidency Policy Next Live: India's agenda to develop an international consensus
Over the course of the day, we will be hearing from key stakeholders and observers on some of the issues India has placed at the top of its agenda as it looks to develop an international consensus on pressing matters and reach a breakthrough in other areas in need of urgent resolution. Strap in!
Good morning and welcome to Moneycontrol’s latest Policy Next summit on India’s G20 Presidency.
