India will be an effective voice of developing nations at G-20: DEA Secy

In a Q&A, Ajay Seth says while the global macro-economic situation has improved over the past few months, headwinds on inflation and other indicators persist

Ahead of the crucial G-20 meeting of Finance Ministers and Central Bank Governors (FMCBG) in Bengaluru, Economic Affairs Secretary Ajay Seth told Arup Roychoudhury in an interview that consensus among nations is absolutely essential for the regulation of cryptocurrency and other digital assets. Seth said that on various issues, including indebtedness of poorer nations, India will be a forceful voice of the global south. He added that while the global macro-economic situation has improved over the past few months, headwinds on inflation and other indicators persist. Edited excerpts:

The Prime Minister and the Finance Minister have stated that India will be the voice of the global south as G-20 President. How will the country approach the issue of high levels of debt of low- and middle-income nations?

The different lender countries have their own priorities and perspectives. India has the responsibility and the opportunity to put forth, in a very effective and forceful manner, the perspective of the developing countries--and that we would be doing. The idea is to sit across the table and find common solutions. Each country has merit in the position it has taken, our aim will be to find common ground.

How would you say the global macroeconomic environment is panning out, going into this G-20 meeting? Would you say headwinds have receded somewhat?

I am not saying it, the reports brought out by the IMF, World Bank etc are saying it. The global headwinds have eased at the margins but the conditions continue to be tough. High price levels have come down. We have seen global inflation continuing to be high, but it has eased somewhat. Are we seeing light at the end of the tunnel? Yes. Are we out of the tunnel? No.

This meeting of FMCBG takes place as the world marks a year of the Russia-Ukraine war. Will the situation in Europe be a part of the discussions?

Yes it is an important event and will figure in the discussions of G-20 and in bilateral meetings between various members. However, I would not like to get into what the ministers will be discussing.

There will be a separate session on crypto assets. Is there a solution in sight to global regulations on digital assets?

Such issues don’t have a common solution. They require deep thinking and then finding what is in common interest. These meetings try to take forward the thinking process and then the countries go back, mull over the issue, and then meet again. As President, our goal is to facilitate these discussions among nations and international organisations, so that collectively we can find solutions, as crypto assets are an area where global policy consensus is absolutely essential. In a similar manner, appropriate levels of regulation are also important.

What will the G-20 agenda be, on the role of multilateral institutions and the private sector in climate finance?

These are complex issues where a consensus will have to be developed. There is domestic financing, there is international public financing which is where the multilateral banks and development institutions come in, there is private financing and there are the policy options. The G-20 partners will be taking the discussions forward on all these aspects.

On all issues, whether climate finance, urban infrastructure, multilateral reforms etc, it is all a team effort. These are collective solutions to be discussed. The challenges are so huge, our attempt is to get consensus on as many issues as possible.