G20 Presidency’s Focus On Integrating MSMEs Into Global Trade: Sitharaman
Finance Minister Nirmala Sitharaman has expressed the need for India to incorporate the results of its G20 presidency into its domestic policy formulation and set a leading example. She also stated that India has the potential to lead in the advancement of the "Jaipur Call for Action" during the upcoming virtual G20 Leaders’ Summit on November 22.
The G20 Trade Ministers had previously issued this call to improve access to information for micro, small, and medium enterprises (MSMEs). They called upon the International Trade Center (ITC) in Geneva to develop an implementation plan, with input from UNCTAD and WTO, to upgrade the ITC’s Global Trade Helpdesk, addressing information gaps faced by MSMEs. The G20 Leaders, in their New Delhi Declaration, recognized the challenges faced by MSMEs, especially in developing countries.
Minister Sitharaman highlighted the significance of MSMEs in India's economy during the presentation of the 2023 Union Budget. Under India's G20 Presidency, there has been a strong focus on integrating MSMEs into international trade, given that they represent a substantial portion of businesses, employment, and GDP worldwide. However, MSMEs, particularly in developing nations, often face barriers to accessing information, limiting their participation in international trade.
The Finance Minister also discussed the global economic situation, noting that it has been dealing with multiple crises since the pandemic, which has adversely affected growth. While the recovery is ongoing, it remains slow and uneven. Global growth rates are lower than in the two decades prior to the pandemic. Sitharaman stressed the need for both global and domestic policy coordination to ensure robust, sustainable, balanced, and inclusive growth.
Policy Implementation For Equitable Growth
According to the latest projections from the International Monetary Fund (IMF), global economic growth is expected to slow down, with India's GDP growth also seeing a reduction for the year 2023-24. To address these challenges, the New Delhi Leaders’ Declaration emphasizes the importance of implementing well-planned macroeconomic and structural policies to promote equitable growth and enhance macroeconomic and financial stability.
India's G20 Presidency has been working on mainstreaming the concerns of the Global South, exploring the use of technology for development, and finding solutions to make multilateral institutions more effective in addressing the complex development financing landscape of the 21st century.
Jaipur Call For Action
The ‘Jaipur Call for Action’ is an initiative within the G20 framework with specific goals such as enhancing Access to Information for MSMEs, promoting Industry, MSMEs, and trade expansion, creating a generic framework for global value chain mapping, and emphasizing caution against supplier and market concentration.
The Jaipur Call for Action was initiated by Union Commerce and Industry Minister Piyush Goyal with the support of G20 member nations. The G20 Declaration recognizes the unique challenges faced by MSMEs, especially in developing nations, regarding their access to information.
Key Outcomes Of The Jaipur Call For Action include
The ITC, in consultation with UNCTAD and WTO, is tasked with creating a detailed plan for upgrading the ITC's Global Trade Helpdesk.
This portal will provide MSMEs with consolidated, trade-related information to assist them in their operations.
A non-exhaustive list of links to government websites relevant to MSMEs will be made available.
Introduction of a voluntary and non-binding G20 generic framework for mapping global value chains.
The G20, as the premier forum for international economic cooperation, underscores the significance of these efforts. India currently holds the G20 Presidency from December 1, 2022, to November 30, 2023, providing a platform to champion these initiatives and drive global economic cooperation.
