BharatNotes Formation and Evolution of the G20
The Group of Twenty (G20) was formally established on 26 September 1999 at the G7 Finance Ministers' meeting in Washington, D.C., with an inaugural ministerial meeting on 15–16 December 1999 in Berlin. Its creation was a direct response to the 1997–98 Asian Financial Crisis, which revealed that the G7 alone could not manage the interconnected global economy.
Elevation to Leaders' Summit (2008): The G20 operated only at the Finance Ministers level until the 2008 Global Financial Crisis triggered its elevation. The first G20 Leaders' Summit was held in Washington, D.C. on 14–15 November 2008 — the G20's transformation from a technocratic forum to the premier platform for international economic cooperation.
Composition
The G20 comprises 19 individual countries + 2 regional blocs = 21 members:
Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, United Kingdom, United States + European Union (founding member) + African Union (admitted September 2023)
African Union (AU) Inclusion: At the New Delhi Summit on 9 September 2023, the AU was formally admitted as the 21st permanent member — the first expansion since the G20's founding in 1999. The AU represents 55 African nations and approximately 1.4 billion people.
The G20 accounts for approximately:
- 85% of global GDP
- 75% of global trade
- Two-thirds of the world's population
G20 Structure
The G20 operates through two parallel tracks:
Finance Track (Sherpa Track)
- Finance Ministers and Central Bank Governors meetings (quarterly)
- Managed by Sherpas (personal representatives of Leaders)
- Working Groups: Sustainable Finance, International Financial Architecture, Global Health, Digital Economy, etc.
Leaders Track
- Annual Leaders' Summit — the apex body
Engagement Groups (Civil Society Parallel Tracks)
| Group | Stakeholder | Focus |
|---|---|---|
| B20 | Business | Trade, investment, finance |
| W20 | Women | Gender equality, women-led development |
| C20 | Civil Society | Poverty, development, environment |
| T20 | Think Tanks | Policy research and recommendations |
| L20 | Labour | Workers' rights, employment |
| Y20 | Youth | Youth employment, education |
| U20 | Urban Leaders | Cities, infrastructure |
| S20 | Science Academies | Science, technology, innovation |
Troika System
The G20 Presidency rotates among members under a regional rotation system. The Troika consists of the current, past, and incoming Presidencies working together for continuity:
| Year | Presidency | Summit Location |
|---|---|---|
| 2022 | Indonesia | Bali |
| 2023 | India | New Delhi |
| 2024 | Brazil | Rio de Janeiro |
| 2025 | South Africa | Johannesburg |
| 2026 | USA | — |
India's G20 Presidency 2023
India held the G20 Presidency from 1 December 2022 to 30 November 2023.
Theme: "Vasudhaiva Kutumbakam — One Earth, One Family, One Future"
Scale: Over 200 meetings across 60 cities — the largest multilateral exercise India has ever organised.
New Delhi Declaration (9–10 September 2023)
The Leaders' Summit adopted the New Delhi Declaration — an 83-paragraph consensus document, with 100% consensus across all 21 members including on Ukraine conflict language (a significant diplomatic feat given Russia-West tensions).
Key outcomes:
| Initiative | Detail |
|---|---|
| African Union inclusion | AU admitted as 21st permanent G20 member |
| IMEC (India–Middle East–Europe Economic Corridor) | MOU signed for multimodal corridor: India → UAE → Saudi Arabia → Jordan → Israel → Greece/Italy → Europe |
| Global Biofuels Alliance (GBA) | Launched 9 September 2023; founding members include USA, Brazil, India, Argentina, Italy; aims to accelerate sustainable biofuel adoption |
| DPI Framework | India's Digital Public Infrastructure (UPI, Aadhaar, DigiLocker) promoted as global model; G20 Framework for DPI adopted |
| LiFE | India's Lifestyle for Environment initiative embedded in G20 sustainable development agenda |
| Debt Restructuring | Commitment to Common Framework; focus on Sri Lanka, Zambia, Ghana |
| Voice of the Global South | India convened parallel summits (Jan 2023 and Nov 2023) with 100+ developing nations |
IMEC — Current Status (2025)
The India–Middle East–Europe Economic Corridor was the flagship connectivity initiative of India's G20 Presidency, but its implementation has been complicated:
- The October 2023 Hamas-Israel war froze Saudi-Israeli normalisation talks that were the political bedrock of the corridor
- Physical rail segments between Saudi Arabia, Jordan, and Israel remain largely on paper
- Diplomatically alive: All signatories remain committed; Modi-Trump White House meeting (2025) reaffirmed IMEC's importance
- April 2025: Construction of some infrastructure components officially began
- February 2025: European Commission President Von der Leyen and PM Modi reaffirmed IMEC during her India visit
- Key challenge: The corridor requires Saudi-Israeli normalisation, different technical rail standards across nations, and coordinated investment
Brazil G20 Presidency 2024
Summit: Rio de Janeiro, 18–19 November 2024
Three Priorities of Brazil's Presidency:
- Social inclusion and the fight against hunger and poverty
- Sustainable development, energy transitions, and climate action
- Reform of global governance institutions
Key outcomes of the Rio Summit:
| Outcome | Detail |
|---|---|
| Global Alliance Against Hunger and Poverty | Launched 18 November 2024; 148 founding members including 82 countries, AU, EU, 24 international organisations; goal: reach 500 million people with cash transfers and 150 million children with school meals by 2030 |
| Taxation of the ultra-rich | Leaders endorsed effective taxation of ultra-high-net-worth individuals (Brazil's 2% wealth tax proposal did NOT become binding; text was a political agreement to "engage cooperatively") |
| Renewable energy | Commitment to triple renewable energy capacity globally by 2030 |
| UN reform | Declaration included text on strengthening the UN General Assembly |
| Social G20 | Civil society (C20), parliamentarians (P20), and urban leaders (U20) given enhanced formal roles |
South Africa G20 Presidency 2025
Host: Johannesburg — first G20 summit on African soil and first since the AU became a permanent G20 member.
Theme: "Solidarity, Equality, Sustainability"
Four Operational Pillars:
- Economic Growth and Employment
- Sustainable Finance and Investment
- Energy Transition and Climate Action
- Health and Food Security
Priority Issues: Strengthening global disaster resilience; debt sustainability for low-income countries; mobilising climate finance; critical minerals for inclusive growth.
G20 vs G7 vs BRICS — Comparison
| Feature | G20 | G7 | BRICS (10 members) |
|---|---|---|---|
| Founded | 1999 | 1975 | 2006/2009 |
| Members | 21 (19 + EU + AU) | 7 | 10 (original 5 + Egypt, Ethiopia, Iran, UAE + Indonesia Jan 2025) |
| Focus | Global economic governance | Advanced economy coordination | Emerging/developing economy coordination |
| Decision-making | Consensus; non-binding | Consensus; non-binding | Consensus; non-binding |
| Share of global GDP | ~85% | ~45% | ~40% (PPP) |
| India's role | Member; 2023 Chair | Guest invitee | Founding member |
| Secretariat | No permanent secretariat | No permanent secretariat | No permanent secretariat |
Global Minimum Corporate Tax (Pillar Two) — G20 Context
The OECD/G20 Inclusive Framework on BEPS (Base Erosion and Profit Shifting) introduced the 15% global minimum corporate tax (Pillar Two) for multinationals with revenue above €750 million.
- Income Inclusion Rule (IIR) came into effect 1 January 2024 in jurisdictions that enacted it
- As of early 2025: 55+ jurisdictions have enacted implementing legislation
- India's status: Has participated in the Inclusive Framework but has not yet enacted domestic GloBE (Global Anti-Base Erosion) legislation
India's Strategic Interests in the G20
- Global South representation: India used its Presidency to amplify voices of developing nations — AU admission, Voice of the Global South, debt restructuring for African/Sri Lankan economies
- Digital governance: Exporting the India Stack (DPI) model as a global public good
- Climate finance: Pushing developed nations to honour $100 billion/year pledge and establish a loss-and-damage fund
- Reform of multilateralism: Advocating for UNSC expansion, IMF quota reform, and WTO reform
- Connectivity: IMEC as an alternative to China's BRI
Recent Developments (2024–2026)
G20 Brazil Summit 2024 — Rio de Janeiro (November 2024)
The 19th G20 Summit under Brazil's Presidency was held in Rio de Janeiro on 18–19 November 2024. Brazil's three presidency priorities were: social inclusion and fight against hunger and poverty; sustainable development and energy transition; and global governance reform. Key outcomes:
The Global Alliance Against Hunger and Poverty was launched with 148 endorsers (82 countries, AU, EU, 9 international financial institutions) — aimed at achieving SDG 1 (No Poverty) and SDG 2 (Zero Hunger) through coordinated national structured programmes. G20 leaders endorsed progressive taxation for ultra-high-net-worth individuals (a Brazilian proposal). The Rio de Janeiro Declaration was adopted. The African Union's permanent G20 membership (achieved under India's 2023 presidency) was further institutionalised.
UPSC angle: G20 Brazil 2024 — Global Alliance Against Hunger and Poverty (148 endorsers), Rio Declaration, progressive taxation proposal. Next in sequence: G20 South Africa 2025.
G20 South Africa Presidency 2025 — India's Engagement
South Africa assumed the G20 Presidency from December 2024, with its theme "Solidarity, Equality, Sustainability." This is the first time an African nation holds the G20 Presidency (following India's 2023 landmark presidency that admitted the African Union). South Africa's priorities focus on debt relief for developing countries, climate finance, and infrastructure investment in Africa. India's engagement with South Africa's presidency continued the momentum of the India-Africa partnership and India's Global South advocacy.
UPSC angle: G20 South Africa 2025 — first African G20 presidency, theme "Solidarity, Equality, Sustainability," following AU membership under India's 2023 presidency.
Troika Continuity — India-Brazil-South Africa Sequence
The G20 Troika (current, previous, and upcoming presidency holders) through 2025 is: India (2023) — Brazil (2024) — South Africa (2025). This means India has remained in the Troika throughout 2023–2025, giving India sustained influence in shaping G20 agendas across three consecutive presidencies. India used this position to ensure continued focus on debt relief, digital infrastructure (GBA — Global Biofuel Alliance; Infrastructure Investment Trust models), and development finance reform.
UPSC angle: G20 Troika = India (2023) + Brazil (2024) + South Africa (2025). India's unusually long Troika membership across 2023–2025 is an important strategic detail.
India's Continuing G20 Legacy — Global Biofuel Alliance and GBA Progress
The Global Biofuel Alliance (GBA), launched at India's G20 presidency in September 2023, gained additional members through 2024. The GBA aims to accelerate adoption of sustainable biofuels as part of the clean energy transition. By mid-2024, GBA had 24 member countries and 12 international organisations. India has positioned GBA as part of its energy transition diplomacy alongside the International Solar Alliance (ISA) and the One Sun One World One Grid (OSOWOG) initiative.
UPSC angle: Global Biofuel Alliance — launched India G20 2023, membership growing (24 countries by mid-2024), part of India's renewable energy multilateral strategy alongside ISA.
PYQ Relevance
- (GS2 Mains 2023): "Assess India's G20 Presidency 2023 and evaluate whether it successfully represented the interests of the Global South." (15 marks)
- (Prelims 2024 pattern): G20 founding year, AU inclusion, Troika system, New Delhi Declaration specifics
- (GS2 Mains 2022): "Discuss the relevance of the G20 as a forum for global economic governance."
Exam Strategy
Non-negotiable Prelims facts:
- G20 founded: 26 September 1999 (ministerial meeting); Leaders' Summit from 2008
- 21 members = 19 countries + EU + AU
- AU admitted: 9 September 2023 (New Delhi Summit) — first expansion in G20's history
- India's Presidency: 1 Dec 2022 – 30 Nov 2023, theme: Vasudhaiva Kutumbakam
- GBA launched: 9 September 2023 alongside New Delhi Declaration
- Brazil 2024: Rio Summit; Global Alliance Against Hunger and Poverty (148 members)
- South Africa 2025: Johannesburg; theme "Solidarity, Equality, Sustainability" — first G20 on African soil
Mains angles:
- G20 as the premier forum for global economic governance — why it matters more than G7 or UN bodies
- India's presidency success: DPI, AU inclusion, 100% consensus on Ukraine language
- IMEC: connectivity ambition vs. geopolitical reality; contrast with BRI
- Limitations of G20: non-binding decisions, structural inequality between members, absence of enforcement mechanism
- Global Minimum Tax: 15% Pillar Two — implications for India's competitiveness as a destination for MNC profits
Cross-link: For current G20 developments under South Africa's 2025 Presidency, follow Ujiyari.com.
