New Delhi: The year 2023 witnessed India’s steadfast commitment to becoming a futuristic, prosperous, inclusive, and developed society, with a robust economic performance at its core.
India’s economic prowess took center stage as it recorded a staggering second-quarter growth of 7.6%, positioning the country among the world’s fastest-growing economies. Notably, the GDP growth for the April-June quarter stood at an impressive 7.8%, reflecting the success of strategic government policies.
In line with the vision to make India a $5 trillion economy, the government led by Prime Minister Narendra Modi adopted a holistic approach, focusing on macro-level growth, micro-level inclusive welfare, digital economy promotion, fintech, technology-driven development, energy transition, and climate action. A significant aspect of this strategy involved a capex-led growth approach, resulting in a substantial increase in the Central Government’s capital expenditure from 2.15% of GDP in 2020-21 to 2.7% of GDP in 2022-23.
The international community took note of India’s commitment to socio-economic reforms, earning accolades from the World Bank and IMF, which recognized India as the fastest-growing Emerging Market Economy.
The G20 Presidency, held by India from December 1, 2022, to November 30, 2023, further solidified the nation’s global prominence.
The New Delhi Summit in September 2023 marked a historic moment with the participation of 43 Heads of Delegations, making it the largest gathering in G20 history. Under India’s leadership, the G20 Finance Track addressed critical global issues, producing a comprehensive report on Strengthening Multilateral Development Banks (MDBs). This report outlined strategies to triple sustainable lending by 2030, reinforcing India’s commitment to addressing global challenges.
India played a pivotal role in fostering international cooperation on crypto-assets, leading to the adoption of the G20 Roadmap on Crypto Assets in October 2023.
The Department of Economic Affairs (DEA) facilitated debt restructuring through the Common Framework and launched the Global Sovereign Debt Roundtable, showcasing support for vulnerable economies.
On the domestic front, the DEA introduced innovative financial instruments like Sovereign Green Bonds, raising ₹16,000 crore in 2023. These funds were allocated to green projects across various ministries, contributing to a sustainable and low-carbon economy.
The government’s focus on women’s economic empowerment materialized with the launch of the Mahila Samman Savings Certificate (MSSC), witnessing over 14.8 lakh accounts opened with deposits totaling ₹8,630 crore as of July 2023. With an attractive 7.5% interest rate compounded quarterly, the MSSC reinforced the government’s commitment to women’s financial inclusion.
The G20 Policy Recommendations emphasized the role of Digital Public Infrastructure (DPI) in advancing financial inclusion and productivity gains. Seamless integration of DPI into G20 discussions during India’s presidency underscored its importance in achieving inclusive growth and sustainable development.
As India concluded its G20 Presidency, it left behind a legacy of strategic global leadership, impactful economic reforms, and a commitment to inclusive and sustainable development.
The Department of Economic Affairs played a pivotal role in 2023, demonstrating a proactive and inclusive approach to sustainable finance, climate action, infrastructure development, and financial sector reforms, both nationally and globally.
