Cabinet approves setting up of G20 Secretariat

• The Union Cabinet approved the setting up of a G20 Secretariat and its reporting structures that will be responsible for making arrangements to steer India's forthcoming presidency of the influential grouping.

• Italy held the G20 Presidency in 2021 while Indonesia is playing the role till November 2022. Italy, Indonesia and India are the G20 troika countries at present.

• India will hold the presidency of the G20 from December 1 to November 30, 2023, culminating with the G20 Summit in India next year. 

• Union Minister Piyush Goyal has been appointed as India’s Sherpa for the G20. Sherpas are representatives of governments and international organisations.

What is G20?

• The G20 is the international forum that brings together the world’s major economies.

• The members of G20 are Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, South Korea, South Africa, Russia, Saudi Arabia, Turkey, the UK, the US and the European Union (EU). 

• Its members account for more than 80 per cent of world GDP, 75 per cent of global trade and 60 per cent of the population of the planet.

• India has been a member of the G20 since its inception in 1999. 

• Prime Minister Modi has been leading India’s representation at G20 summits since 2014. 

Genesis of G20

• After the Asian Financial Crisis in 1997-1998, it was acknowledged that the participation of major emerging market countries is needed in discussions on the international financial system, and G-8 finance ministers agreed to establish the G20 finance ministers and central bank governors meeting in 1999.

• The G20 finance ministers and central bank governors meetings were centered on major economic and monetary policy issues amongst major countries in the global financial system and aimed at promoting cooperation toward achieving stable and sustainable global economic growth for the benefit of all countries. 

• The participating members in the meetings were the same as the current G20 members.

• Since then, finance ministers and central bank governors have met annually. 

• India hosted a meeting of G20 finance ministers and central bank governors in 2002.

• In November 2008, the inaugural G20 Summit was held in Washington, D.C. in response to the global financial crisis that occurred in the wake of the collapse of the Lehman Brothers. 

• The G20 meeting of finance ministers and central bank governors was upgraded to the head of state level, as a forum for leaders from major developed and emerging market countries. 

• In September 2009, the third summit was held in Pittsburgh where the leaders designated the G-20 as the “premier forum for international economic cooperation.” 

• From thereon, the summit meetings were held semi-annually until 2010 and annually from 2011 onwards.

Establishment of G20 Secretariat

• The G20 Secretariat will be guided by an apex committee headed by the Prime Minister and it will comprise the finance minister, the home minister, the external affairs minister and India's G20 sherpa.

• As per practice, a G20 Secretariat is being established to handle work relating to substantive/knowledge/content, technical, media, security and logistical aspects of India's G20 presidency.

• It will be manned by officers and staff from the ministry of external affairs, ministry of finance, and other relevant line ministries/departments and domain knowledge experts.

• The Secretariat will be functional till February 2024.

• A coordination committee will also be set up to oversee all G20 preparations and it will report to the apex committee. 

• The G20 Secretariat will enable long term capacity building, including knowledge and expertise, for India’s leadership on global issues in multilateral fora.

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