India’s G20 Diplomacy: Achieving a Delicate Balance Amid Global Challenges

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India’s G20: Recently, the term ‘Global South’ has gained prominence in these parts of the world, with India advocating for a focus on the development of countries that were previously grouped under the G-77, including both developing and least developed nations. Security analysts, in particular, were cautious about making this group the primary focus of India’s G20 Presidency, given the presence of China and its aggressive and expansionist agenda.

However, if we look at the G20 New Delhi declaration, which was adopted by global leaders ahead of schedule, it appears that India’s ambitions, strategies, and efforts have struck a delicate balance.

India’s G20

India's G20

Prime Minister Narendra Modi’s leadership and determination played a pivotal role, contrary to Western analysts’ initial belief that the New Delhi leaders’ summit would end without any formal declaration. There were concerns about a deep divide between Western leaders and China, with Russia standing firm on the Ukraine War. However, India, under PM Modi’s leadership, achieved the seemingly impossible task of securing a unanimous consensus on an 83-paragraph declaration, which was approved by presidents and prime ministers. PM Modi’s gavel signaled a successful agreement marked by “healing, harmony, and hope.”

This outcome has proven many Western analysts wrong, as they underestimated India’s leadership, Modi’s friendly demeanor, and the country’s influence within the G20, which accounts for 85% of global economic output and 75% of world trade. Some commentators initially viewed the declaration as a Western concession to Russia, particularly on the issue of Ukraine, but this may not be an accurate interpretation.

The United States and Europe may have taken a tactical step back while agreeing to the declaration, including crucial lines concerning the “war in Ukraine.” In essence, the New Delhi declaration builds upon what was achieved in Bali in November of the previous year. Finding common ground for a declaration was likely a strategic move to maintain the relevance of the G20, especially considering the fragile state of global economies in the aftermath of the COVID-19 pandemic.

The declaration underscores India’s ability to influence global powers. The personal rapport that Prime Minister Modi established with world leaders played a significant role in advancing an ambitious economic and development agenda that is both inclusive and forward-thinking.

Western powers did not overlook the message, even after the last-minute withdrawal of Chinese President Xi Jinping from the New Delhi summit. In fact, this withdrawal prompted sharp remarks from US President Joe Biden, who accused Beijing of being a “spoilsport.”

The international community, especially Western Europe and the US, recognized the importance of formulating a roadmap to address critical issues such as poverty alleviation, transitioning to green energy, restructuring the debt of economically struggling nations, and developing digital public infrastructure and cryptocurrencies.

India stood firm in balancing the aspirations of various countries, groups, and blocs, including the G7 and BRICS, Russia, and China. This resulted in a G20 summit that appeared somewhat divided. Notably, India, the US, Saudi Arabia, the UAE, France, Germany, and Italy jointly announced a massive infrastructure-driven economic project, spanning from India to the Middle East and Europe, involving rail, road, and undersea data connectivity lines.

This project poses a significant challenge to China’s Belt and Road Initiative (BRI), which has burdened several developing nations with unsustainable debt. Stakeholders from India, the Middle East, and the EU will develop a roadmap and funding plans for this project within 60 days. This initiative could reduce India’s dependence on Pakistan for land and undersea connections to Europe.

In the midst of discussions dominated by the Ukraine war, the inclusion of the 55-member African Union into the G20 may have received less attention, but its significance should not be underestimated. India played a crucial role in welcoming the African Union to this prestigious club.

This marks the first expansion of the G20 since its formation in 1999. Importantly, the African Union will enjoy full permanent membership in the G20, putting it on par with the exclusive status previously held only by the 27-member European Union. The African Union’s inclusion in the G20 also underscores India’s recent emphasis on the ‘Global South’ concept.

Another notable outcome is the establishment of a biofuels alliance, similar to the International Solar Alliance, which will focus on transitioning to environmentally friendly alternatives and fuels, particularly in the global transport and household sectors. This 19-country group aims to promote a shift towards eco-friendly solutions and the decarbonization of global economic expansion.

The G20 Presidency, India’s diplomatic maneuvering, and the cultural, civilizational, and philosophical connections showcased alongside the tangible gains from the leaders’ summit will leave a lasting impact.

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