What is G20? Why is G20 Summit being held in India?

India holds the Presidency of G20 this year, hosting summits and forums for the top 20 countries. The main summit will occur on September 9th and 10th in New Delhi. The video will explain what G20 is, why it exists, its purpose, and why these countries meet annually.

The video explains the origins of the G7, which predates the G20 and emerged in the early 1970s due to a worsening global economic situation, specifically the 1973 oil crisis. Western countries, heavily reliant on Middle Eastern oil, faced economic recession due to the oil embargo imposed by Arab countries supporting Israel. This led to informal meetings among finance ministers and eventually the formation of the G6 and later G7.

The G20 was initiated because of the 1997 Asian financial crisis, which significantly impacted South Korea, Indonesia, Thailand, and other Asian economies. Recognizing increasing global interconnectedness, the G7 members understood the need to collaborate with emerging economies to foster economic stability and prevent severe recessions. Consequently, the G20 was formally established on September 26, 1999, during a meeting of the G7 finance ministers.

The initial criteria for G20 membership included the existing G7 nations, the countries with the largest economies, and significant regional powers to ensure global representation. This led to the inclusion of countries like China, India, Brazil, South Africa, Russia, Indonesia, South Korea, Argentina, Mexico, Australia, Saudi Arabia, and Turkey, along with the European Union representing Europe.

Initially, G20 meetings were attended only by finance ministers and central bank governors. However, the 2008 global financial crisis prompted more serious meetings involving presidents and prime ministers. The first official summit of G20 leaders occurred in 2008, where countries collectively decided to reduce trade barriers and increase spending to revive economies.

The G20 Summit is held annually in a different country, and a 'Troika System' ensures smooth operations. The Troika consists of the current, previous, and upcoming G20 Presidents. The G20 Presidency rotates annually among member countries. Although the G20 Summit is taking place in India this year, it emphasized that it is part of the normal rotational process.

In addition to the 20 member countries, guest countries are invited to G20 Summits, with Spain having a permanent invitation. This year, India invited nine additional countries. While the primary goal of the G20 is to promote international financial stability, it has expanded to address other major issues like climate change and sustainable development.

Achieving unanimous agreement among the 20 countries is difficult due to differing foreign policies and priorities. India has set the theme of 'Vasudev Kutumbakam' for this year's G20, emphasizing themes like Green Development, Sustainable Development Goals, digital public infrastructure, and women-led development.

The main G20 Summit lasts for two days. Besides the main summit, there are minister-level summits for finance, health, and agriculture ministers. There are also engagement groups like B20 for business, C20 for civil society, W20 for women, Y20 for youth, and T20 for think tanks.