The G20 leaders amid uneven global economic growth, which is below its long run average, unanimously agreed to implement well calibrated macroeconomic and structural policies for Strong, Sustainable, Balanced, and Inclusive Growth. They also asserted that a rules-based, non-discriminatory, fair, open, inclusive, equitable, sustainable and transparent multilateral trading system, with WTO at its core, is indispensable. They subsequently issued the New Delhi Declaration on Saturday during the summit.
The Declaration Reads:
Global Economic Situation
Cascading crises have posed challenges to long-term growth. Facing an uneven recovery, and cognizant of the need to boost long-term growth, we will implement well- calibrated macroeconomic and structural policies. We will protect the vulnerable, through promoting equitable growth and enhancing macroeconomic and financial stability. Such an approach will help resolve the cost-of-living crisis and unlock strong, sustainable, balanced, and inclusive growth.
Global economic growth is below its long-run average and remains uneven. The uncertainty around the outlook remains high. With notable tightening in global financial conditions, which could worsen debt vulnerabilities, persistent inflation and geoeconomic tensions, the balance of risks remains tilted to the downside. We, therefore, reiterate the need for well-calibrated monetary, fiscal, financial, and structural policies to promote growth, reduce inequalities and maintain macroeconomic and financial stability.
We will continue to enhance macro policy cooperation and support the progress towards the 2030 Agenda for Sustainable Development. We reaffirm that achieving strong, sustainable, balanced and inclusive growth (SSBIG) will require policymakers to stay agile and flexible in their policy response, as evidenced during the recent banking turbulence in a few advanced economies where expeditious action by relevant authorities helped to maintain financial stability and manage spillovers. We welcome the initial steps taken by the Financial Stability Board (FSB), Standard Setting Bodies (SSBs) and certain jurisdictions to examine what lessons can be learned from this recent banking turbulence and encourage them to advance their ongoing work.
We will use macroprudential policies, where required, to safeguard against downside risks. Central banks remain strongly committed to achieving price stability in line with their respective mandates. They will ensure that inflation expectations remain well anchored and will clearly communicate policy stances to help limit negative cross-country spillovers.
Central bank independence is crucial to maintaining policy credibility. We will prioritise temporary and targeted fiscal measures to protect the poor and the most vulnerable, while maintaining medium-term fiscal sustainability. Ensuring the overall coherence of the monetary and fiscal stances remains important. We recognise the importance of supply-side policies, especially policies that increase labour supply and enhance productivity to boost growth and alleviate price pressures. We reaffirm the April 2021 exchange rate commitment made by our Finance Ministers and Central Bank Governors.
We recognise the critical role of private enterprise in accelerating growth and driving sustainable economic transformations. To this end, we resolve to work with private sector to:
i. Create inclusive, sustainable, and resilient global value chains, and support developing countries to move up the value chain.
ii. Facilitate investments including Foreign Direct Investments (FDIs) towards sustainable business models.
iii. Devise pipelines of investible projects in developing countries, by leveraging expertise of MDBs to mobilise investments.
iv. Promote the ease and reduce the cost of doing business.
We recognise that start-ups and MSMEs are natural engines of growth. They are key to socio-economic transformation by driving innovation and creating employment. We welcome the establishment of the Start-up 20 Engagement Group during India’s G20 Presidency and its continuation.
Unlocking Trade for Growth
We reaffirm that a rules-based, non-discriminatory, fair, open, inclusive, equitable, sustainable and transparent multilateral trading system, with WTO at its core, is indispensable. We will support policies that enable trade and investment to serve as an engine of growth and prosperity for all. Today, we:
Renew our commitment to ensure a level-playing field and fair competition by discouraging protectionism and market distorting practices, to foster a favourable trade and investment environment for all. We reiterate the need to pursue WTO reform to improve all its functions through an inclusive member-driven process, and remain committed to conducting discussions with a view to having a fully and well- functioning dispute settlement system accessible to all members by 2024. We commit to work constructively to ensure positive outcomes at the WTO’s Thirteenth Ministerial Conference (MC13).
Recognise challenges MSMEs, particularly in developing countries, face with respect to access to information and thus, welcome Jaipur Call for Action for enhancing MSMEs’ access to information to promote the integration of MSMEs into international trade.
Welcome the adoption of G20 Generic Framework for Mapping Global Value Chains (GVC) to help members identify risks and build resilience.
Welcome the High-Level Principles on Digitalization of Trade Documents and will make efforts to encourage implementation, and encourage other countries to consider these principles.
Ensure that trade and environment policies should be mutually supportive, consistent with WTO and multilateral environmental agreements.
Recognise the importance of WTO’s ‘Aid for Trade’ initiative to enable developing countries, notably LDCs to effectively participate in global trade, including through enhanced local value creation. We welcome all efforts to mobilize necessary resources in this regard.