17 January 2023, NIICE Commentary 8501
Dr Amaresh Jha
India and China are both important members of the G20 and have significant stakes in the forum. As two of the world’s largest economies, they play a crucial role in shaping the global economic and financial landscape. For India, membership in the G20 provides an opportunity to engage with other major economies and to promote its interests on the global stage. India has used its G20 membership to push for reforms in global governance institutions, to raise awareness about development challenges, and to advocate for greater investment in infrastructure and technology. China’s role in the G20 is critical, given its status as the world’s second-largest economy. China has used its G20 membership to advance its economic and financial interests, to promote globalization and free trade, and to contribute to the development of global economic governance. In recent years, China has also used the G20 platform to promote its Belt and Road Initiative, a massive infrastructure investment program aimed at boosting economic connectivity and cooperation in the Asia-Pacific region and beyond. Overall, India and China’s presence in the G20 highlights the growing importance of emerging economies in the global economy and underscores the need for a more inclusive and representative approach to economic governance.
India’s agenda at the G20 focuses on promoting inclusive and sustainable global economic growth, improving financial and tax regulation, and addressing global challenges such as climate change, terrorism, and cyber security. Like China, India also seeks to increase its influence in the international community and to promote its political and economic interests on the global stage. Overall, China’s agenda also typically focuses on promoting global economic growth, increasing international trade and investment, and addressing global issues such as climate change and poverty. China also seeks to strengthen its role as a major player in the international community and to promote its political and economic interests on the global stage. Additionally, China often uses the G20 as a platform to advocate for reforms at the international financial system and to push for greater representation for emerging markets in international economic decision-making. Indian Prime Minister Narendra Modi, in his statement on December 1, 2022, said that “India would aim to depoliticize the global supply of food, fertilizers and medical products, so that geopolitical tensions do not lead to global disruptions”. Modi also stated that “Our G20 priorities will be shaped in consultation with not just our G20 partners, but also our fellow travellers in the global South, whose voice often goes unheard”. He further added that India will encourage an honest conversation among the most powerful countries – on mitigating risks posed by weapons of mass destruction and enhancing global security. Indian President Draupadi Murmu during the budget session said that “with the mantra of One Earth, One Family, One Future, India is attempting to find collective solutions to the current global challenges in collaboration with the G20 member countries”.
Regarding conflict with China, India has several outstanding disputes with China, including a long-standing territorial dispute over the Himalayan region of Ladakh and issues related to trade and border security. While both countries have made efforts to manage these differences through diplomatic channels, tensions between India and China have increased in recent years, and the relationship between the two countries remains complex and challenging. However, India and China have also been working to strengthen economic ties, including through trade and investment, and have sought to deepen cooperation in regional and multilateral forums such as the G20.
Hosting the G20 provides India with an opportunity to demonstrate its growing economic and political influence on the world stage, boosting domestic and international investment. The G20 summit can help to boost investment in India, both domestically and internationally, by highlighting the country’s economic potential and investment opportunities, improving global economic governance. India can use its G20 presidency to push for reforms in global economic governance, to better align the interests of developed and developing countries, and to promote inclusive and sustainable growth. On the other hand, the challenges of hosting G20 is to balance its domestic priorities, such as economic growth and development, with its international responsibilities as the G20 host country. This may require making difficult trade-offs and managing conflicting interests. Overall, hosting the G20 presents India with an opportunity to demonstrate its leadership and to play a key role in shaping the global economic and financial landscape. However, to maximize the benefits of hosting the summit, India will need to carefully manage the opportunities and challenges that come with the responsibility.
One area where India and China are at crossroads in the G20 is on issues related to trade and investment. India has been cautious about opening its economy to foreign investment, while China has been more open to foreign investment and has been actively promoting its Belt and Road Initiative (BRI) to enhance economic connectivity in the region. This difference in approach may lead to differences in views on trade and investment issues within the G20.
Another area where India and China may diverge in the G20 is on issues related to global governance. India has been pushing for reforms in global governance institutions to better reflect the interests of developing countries, while China has been advocating for a more multi-polar world and for a greater role for emerging economies in shaping global economic and financial policies. Despite these differences, India and China also have common interests in the G20, such as promoting inclusive and sustainable growth, improving global economic governance, and addressing the challenges posed by climate change and other environmental issues. In these areas, India and China can work together to advance their shared goals and to promote the interests of developing countries in the G20. In conclusion, the relationship between India and China in the G20 is complex and dynamic, and it reflects the broader and more nuanced relationship between the two countries. While they may have differences in views on some issues, they also have common interests that they can pursue cooperatively within the forum.
Dr Amaresh Jha is Associate Professor at School of Modern Media, UPES, Dehradun, India.
