IN less than a fortnight, India will be hosting the G20 Summit in New Delhi, on 9-10 September 2023, the culminating meeting of India’s assumption of the G20 Presidency for a year. The Summit will witness one of the largest gatherings of world leaders representing the 19 countries and the European Union who are G20 members, besides nine guest countries and heads of multilateral agencies. The theme of India’s G20 Presidency is ‘One Earth, One Family, One Future. When Prime Minister Narendra Modi addresses the opening session of the Summit, US President Joe Biden and President Xi Jinping of China will be among the honoured guests.

The G20 comprises Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Türkiye, the United Kingdom and the United States and the European Union. Apart from the members, Bangladesh, Egypt, Mauritius, Netherlands, Nigeria, Oman, Singapore, Spain and UAE are invited as guest countries where Spain is a permanent guest.

The preparations to house the G20 delegations are in full swing, according to official sources. Hotels have been booked across Delhi, Noida, Gurugram, and Aerocity in the NCR. All the meetings of the G20 leaders will be held at Bharat Mandapam in the Pragati Maidan, which is also the venue for the ceremonial banquet. An important event on the Summit calendar will be a visit to Rajghat to pay tribute to Mahatma Gandhi.

A challenging year

It has by no means been an easy year globally since India assumed the Presidency on 1 December 2022: the world has been beset by the continuing geopolitica tensions arising from the Ukraine-Russia conflict and the resultant disruptions in supply chains, the slow pace of post-pandemic recovery and economic downturn in several major global economies among other issues. These global challenges are even jeopardising the effectiveness of multilateralism as a tool for global stability.

Assuming the Presidency under these demanding conditions was an enormous challenge for India that it faced squarely and achieved a fair amount of success. India’s effective handling of many of the challenges, especially the critical post-pandemic situation in the country has been commended globally.

India is currently part of the G20 Troika (concurrent past, present and future presidencies) comprising Indonesia, India, and Brazil, which marks the first time that the troika comprises three developing and emerging economies.

India is the 18th country to assume the G20 presidency. It took over from Indonesia on 1 December 2022 and will be handing over the baton to Brazil on 30 November 2023. India considers this G20 summit not merely as a diplomatic meeting, but a new responsibility that reflects the world’s trust on it. It is a good opportunity for India to demonstrate its potential especially before the developed world and to show its ability to emerge as a leader of the global south.

India’s G20 priorities, as stated by the government, are inclusive, equitable, and sustainable growth, women’s empowerment, digital public infrastructure and tech-enabled development, climate financing, global food security, and energy security, among others. Apart from focusing on these areas, India is expected to push issues that would positively affect poorer nations.

Indonesia made a beginning during its term by working in areas such as innovation, empowering MSMEs and vulner able groups, and collaboration between developed and developing countries.

In keeping with its priorities, the theme for India’s G20 presidency is ‘One Earth, One Family, One Future’ – to function around the principles of the universal sense of oneness:

• One Earth: heal the planet by encouraging sustainable and environment-friendly lifestyles based on Indian traditions.
• One Family: promote harmony within the human family by depoliticising pertinent supply chains of food, fertilisers, and medicines. This is done with the aim to prevent humanitarian crises due to geopolitical tensions.
• One Future: encourage honest conversations among the most powerful nations of the world regarding core issues of climate change and mitigation of risks posed by weapons of mass destruction to enhance global security.

Policy Priorities for the G20: One Earth, One Family, One Future

Policymakers urged to support vulnerable people and economies, protect the planet, and harness digital progress for all

AT a time of heightened uncertainties for the global economy, India’s strong performance remains a bright spot. So, it’s fitting that Group of Twenty finance ministers and central bank governors will gather in Bengaluru this week.

This will be another challenging year. But it could represent a turning point – with inflation declining and growth bottoming out. Indeed, while our latest projections show global growth slowing to 2.9 percent this year, we anticipate a modest rebound to 3.1 percent in 2024.

Look behind the headline numbers and we see emerging market and developing economies providing much of the momentum. We expect them to account for about four-fifths of global growth this year, with India alone expected to contribute more than 15 percent.

Global growth

Emerging market and developing economies are expected to account for about 80% of global growth this year and next. But beyond its role as a global growth engine, India is uniquely positioned to bring countries together.

In a world facing multiple challenges and rising geopolitical tensions, this leadership is critical – and beautifully captured in the theme of India’s G20 presidency: One Earth, One Family, One Future.

Let me share my view of what this spirit of ‘one’ represents for policymakers and for all of us as a global community.

First, one family means solidarity and protecting the vulnerable.

The reality is that growth is still subpar and price pressures are still too high. And, after three years of shocks, too many economies and people are still hurting badly.

Around the world, many households struggle to make ends meet because of the high cost of living. Millions cannot afford fuel for heating or cooking. Successive shocks have increased poverty, jeopardizing decades of progress. And, notwithstanding some easing in food prices, a record 349 million people in 79 countries face acute food insecurity.

Supporting the vulnerable is vital in all countries.

Fiscal measures should be temporary and laser-focused on protecting those who are most in need – always good practice, but even more important as countries grapple with increasingly limited resources and higher debt. In most countries, targeted measures need to be coupled with gradual fiscal tightening to rebuild buffers and ensure debt sustainability.

Meanwhile, bringing inflation back to target remains imperative. To get there, policymakers need to stay the course on monetary tightening. Aligning fiscal and monetary policies will help. Clear communication of these policy goals is vital to avoid a sudden repricing in financial markets.

While the global tightening cycle is necessary to ensure price stability, policymakers must be mindful of adverse spillovers to emerging and developing economies – including through a stronger US dollar and capital outflows. While financial conditions have improved since the G20 last met, providing some modest relief, we have seen how higher borrowing costs exacerbate the vulnerability of economies with heavy external debt burdens.

About 15 percent of low-income countries are in debt distress and an additional 45 percent are at high risk of debt distress. And among emerging economies, about 25 percent are at high risk and facing “default-like” borrowing spreads.

Here, solidarity means better mechanisms to restructure debt. Under the G20’s Common Framework, Chad reached an agreement with its creditors at the end of last year, and Zambia and Ghana are progressing toward debt resolution. But the ground rules need to be clarified and the processes made more efficient and effective.

To accelerate debt restructuring efforts, the IMF, World Bank, and India’s G20 presidency are convening a new Global Sovereign Debt Roundtable. This week in Bengaluru, we will meet in-person for the first time – and pave the way for creditors, both public and private, and debtor countries to work together, assess the existing shortcomings and best ways to tackle them.

In this more shock-prone world, some emerging and developing economies will also require additional financial support. So, a well-resourced global financial safety net, with the IMF at its centre, is more important than ever.

Think of how the Fund has stepped up to support our family of nations since the start of the pandemic. Over $272 billion for 94 countries of which about $34 billion was fast-disbursing emergency financing. The historic SDR allocation of $650 billion to boost our members’ reserves. And a new Food Shock Window provides fast access to resources for countries hit hardest by the food security crisis.

Now, further solidarity is needed to stand as one with the low-income and vulnerable members of our family to ensure they can still access concessional IMF financing in times of distress and to guard against future crises. Others with the strength and capacity to do so need to stand up and help address fundraising shortfalls – especially on subsidy resources in the Poverty Reduction and Growth Trust – and deliver additional contributions to the new Resilience and Sustainability Trust. This also means determination to advance the 16th General Review of Quotas so we can complete it by the end of the year.

Second, one earth means protecting our planet, our home.

We are witness to the increasingly severe and pervasive effects of climate change – an existential threat to humanity that we can only fight as a collective. We must band together as one family in defence of our one earth.

Our collective goal of delivering on the Paris Agreement and boosting resilience will require policies that can help redirect trillions of dollars towards green projects. Consider smarter regulation, price signals and well targeted subsidies that incentivize low-carbon investment or financial innovations that mobilize more private capital.

Here the IMF’s advice and financial support is working in tandem to mitigate the massive climate-related risks to economic and financial stability. The first wave of pilot countries accessing the Resilience and Sustainability Trust demonstrates how we are helping vulnerable countries set up the right policies and create an environment conducive to climate-friendly investments. Alongside this, we are coordinating with others – including multilateral development banks and the private sector – who have a key role to play in reducing investment risks

To be sure, there are signs of progress, as major economies realign their fiscal frameworks to accelerate the green transition. But policies should stay focused on that transition – rather than providing a competitive advantage to domestic firms. ‘Green subsidies’ for early-stage technologies can be helpful – look at how they lowered the global price of solar energy. They must, however, be carefully designed to avoid wasteful spending or trade tensions, and to make sure that technology is shared with the developing world.

In other words, we must not slide into protectionism. This would make it even more difficult for poorer countries to access new technologies and support the green transition.

The health of our earth is essential to our future. But it is not the only ingredient.

One future means ensuring everyone can prosper.

In an era of technological transformation, how policymakers manage the potential of digital progress can be central to a fair and inclusive future. Think of the revenue and compliance gains from digital tax administration; greater transparency through online procurement that helps fight corruption; and the accountability of digital public financial management systems that can strengthen the social contract.

India’s Unified Payments Interface is an excellent example of technology boosting financial inclusion. Last month alone, this layer of India’s digital public infrastructure processed over 8 billion transactions. And that system allows 400 million people in rural areas to participate with legacy ‘push-button’ cellphones.

This is just the beginning. Most IMF member countries are now actively evaluating central bank digital currencies (CBDCs) that could bring substantial benefits, such as more resilient payments in disaster-prone countries and greater financial inclusion. India has conducted an in-depth assessment of CBDCs, which could inform similar studies elsewhere, accelerating digital progress worldwide.

Yet any new financial technology also comes with risks.

The recent collapse of some prominent crypto exchanges has intensified concerns about market integrity and user protection. That is why we need the right policies – for example, to strengthen financial regulation and develop global standards that can apply evenly across borders. The IMF’s work on crypto assets is particularly focused on macro-financial policies.

The idea of maximizing upsides while avoiding missteps lies at the heart of the IMF’s capacity development work. Our objective is to be a transmission line of best practice across our entire membership.

This spirit of ‘one’ should guide us as we move forward.

To achieve the goals of ‘One Earth, One Family, One Future’, we need to find common ground even as geopolitical tensions are rising. And we need to steer clear of zero-sum policies that would only leave the world poorer and less secure.

As Indian Nobel Laureate Rabindranath Tagore once said: ‘You can’t cross the sea merely by standing and staring at the water.’For G20 policymakers, this means having the courage to take the right actions, steering the ship we are all on to safe harbour.

THE G20

THE Group of Twenty or G20 is the premier forum for international economic cooperation comprising 19 developed as well as emerging nations of the world and the European Union. It was founded in 1999 as a forum for the Finance Ministers and Central Bank Governors of the member countries to discuss global economic and financial issues after the Asian financial crisis raised the alarm for global financial stability and pointed out the need for a concerted effort to make a fundamentally strong and integrated global financial architecture. Later, during the global economic and financial crisis that started in 2007, G20 was upgraded to the level of Heads of states or governments in 2008 to include all the spheres of human life rather than limiting it to only economic and financial issues.

Vision of G20

G20 was formed with a view to achieve global economic stability and a risk-free integrated global financial architecture. Since its very inception, the group has been playing a leading role in shaping and strengthening global architecture and governance on all major international economic issues. In addition,-

each presidency comes with some unique vision in line with the broader objectives of the forum as a whole. The Indian presidency emphasises human-centric globalisation with a view to work together across the globe and set a new world order in the post-pandemic era.

Members of G20

The G20 comprises 19 economically developed as well as developing or emerging countries namely Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Türkiye, United Kingdom and United States along with the European Union. The G20 members represent around 85 percent of the global GDP, over 75 percent of the global trade, and about two-thirds of the world population. Apart from those member countries, Bangladesh, Egypt, Mauritius, Netherlands, Nigeria, Oman, Singapore, Spain and UAE are invited as guest countries where Spain is a permanent guest.

G20 Presidency

The G20 does not have a permanent secretariat. One member takes over the presidency each year to steer the group’s agenda that is split into two tracks, one led by finance ministers and another by emissaries of leaders of member countries. In the process and system of its work, the G20 has a Presidency determined by consensus by its members based on regional rotation and changes every year. The Presidency is supported by the Troika formed by the previous, current and incoming Presidency. During India’s presidency, the troika will comprise Indonesia, India and Brazil respectively.

Structure of G20

The G20 consists of two parallel tracks: the Finance Track and the Sherpa Track. Finance Ministers and Central Bank Governors lead the Finance Track while Heads of states or governments (Sherpa) lead the Sherpa Track. Within the two tracks, there are thematically oriented working groups in which representatives from the relevant ministries of the members as well as from invited/guest countries and various international organisations participate.

In addition, there are Engagement Groups which bring together civil societies, parliamentarians, think tanks, women, youth, labour, businesses, and researchers of the G20 countries.

Objectives of G20

The G20 works to address major issues related to the global economy, such as international financial stability, climate change mitigation, and sustainable development with the following objectives:

• Policy coordination between its members in order to achieve global economic stability, sustainable growth
• To promote financial regulations that reduces risks and prevents future financial crises;
• To create a new international financial architecture.

During its presidency, India’s objectives include the supply of affordable technology for inclusive, equitable and sustainable environmental growth, highlighting the digital transformation of the country; women’s empowerment; climate financing; global food security; and energy security, among others.

RECENT TRENDS IN GLOBAL TRADE

IN recent years, global trade has gone through a number of disruptions. No other crisis has been as pervasive and disruptive to global trade as the pandemic. It destroyed long-established supply chains and affected investment severely. Even after the pandemic, the recovery has been slow and fragile, complicated further by geopolitical tensions, widespread financial insecurity, and cost of living crises in key economies. Recent studies have identified the following features in the current global trade which may pose a serious threat to multilateral trading system and globalisation. These are:

a. Unilateralism: Recent examples indicate how countries have taken up ‘aggressive unilateralism’ which restricted free trade and even at times changed the trading pattern of a the targeted economy with complete disregards to multilateral platforms such as WTO. The EU’s revised trade policy which allows the bloc to take unilateral trade policy decisions without WTO sanctions is one such example. The recently-introduced carbon border adjustment mechanism (CBAM) by the EU not only indicates protectionism but also tries to change the pattern of global trade behaviour.

b. Protectionism: Even before the COVID crisis, the world was witnessing rising waves of protectionism amongst its major economies. The US-China trade conflict in which the two countries simultaneously slapped excessive tariffs on each other’s imports, put sanctions against companies, etc. has been a prime example of the rising protectionism. At the same time EU continued imposing restrictive policies such as safeguard duties and countervailing measures on imports from its key members including India. At the same time countries are bringing new industrial policies which encourage indigenous production and provide benefits to those resorting to domestic procurement. This indicates a long-term protectionist trend. As per recent data by Global Trade Alert, since 2009, there have been 47,603 interventions in trade by various countries out of which 82 percent has been harmful and 18 percent have been liberalising (Figure1) Furthermore, among the harmful interventions most are in the form of subsidies including export subsidies. (Figure2)

Figure1: Number of trade interventions by different countries since 2009

Source: Global Trade Alert, https://www.globaltradealert.org/global_dynamics

c. Fragmentation: Since before the pandemic, countries have started resorting to plurilateral propositions with disregard to multilateral bodies such as the WTO. There has been relentless political push especially since the pandemic to reorganise supply chains in favour of geo-political partnerships. The bigger trade such as the Trans-Atlantic Partnership or the recent US led Indo-Pacific Political Framework and the India-Japan-Australia Supply Chain Resilience Initiative are some examples. Experts feel that these initiatives can lead to gated globalisation or fragmented globalisation which will further jeopardise global trade governance mechanisms.

While restructuring of trade strategies in favour of trusted partners is a given behaviour especially after the pandemic, it needs to be remembered that globalisation is an important means for equitable distribution of the gains from trade. Studies have already indicated how global value chains or GVCs have led to fragmentation in the production process which has enabled firms to specialise in particular aspects of production. GVCs have not only fostered job creation and economic growth; they have also enabled countries to exchange technology and knowledge, thereby making the growth more sustainable. The advent of GVCs has also given opportunities to small firms to internationalise their production process.

Recent reports have also indicated that countries which have been more deeply engaged in GVCs recovered quicker from the pandemic than those which were less integrated. A World Bank report titled ‘Global Value Chains in Light of COVID-19: Trade, Development & Climate Change’ showed specifically how GVCs played a crucial role in driving recovery from the pandemic including a global trade collapse.

The report further indicated how re-shoring and friend-shoring by key buyers such as the USA and China can drive around 52 million people in developing and less developed economies into extreme poverty by the end of 2030. At the same time more GVC-friendly measures could lift around 21.5 million people out of extreme poverty in Africa and South Asia.

G20 and multilateral trade

The G20 being a forum of the world’s largest economies can bring back the stability and trust in the global multilateral trade systems. These countries with their economic capability (75 percent of global trade) can build a shared understanding of challenges and opportunities facing the global economy. Even if the G20 countries can foster trade growth within the group it will be a very positive step towards greater liberalisation.

India located in the resource-rich South Asia will be a big benefactor of an improved global trade system. India’s trade data indicates how closely it is associated with its G20 partners especially in technology rich sectors such as engineering.

Table1 shows India’s overall merchandise trade with the G20 countries in 2021-22.

The table shows that G20 countries constitute some of India’s major trade partners, accounting for 57 percent of India’s total exports and 52 percent of India’s total imports.

In terms of engineering exports, too, G20 countries play a crucial role. Table2 indicates that in the last five years, on an average 58.5 percent of India’s engineering exports went to the G20 countries.

The European Union is the topmost export destination with a share of almost 32 percent followed by USA, China, Turkey, and UK. EU and USA together constitute around 58 percent of India’s engineering exports to G20 nations.

Table3 lists the CAGR of India’s engineering exports to G20 economies in the last five years. Our analysis indicates that over this period, India’s engineering exports to all G20 nations barring Mexico and Indonesia grew at more than 5 percent.

The table shows India’s potential to serve G20 as a major supplier of engineering goods. If the countries come together and promote further globalisation in trade, India would be one of the key beneficiaries. The country already identifies the importance of G20 in reinstating multilateralism in global trade. The Indian presidency has already identified the following five key issues which could help in fostering a far more resilient and inclusive global trade. These are:

• Trade for growth and prosperity:

  Historically open trade has been a harbinger of economic prosperity. To reclaim the importance of trade it is important that the G20 partners coordinate their policies in such as way so that trade can play a beneficial role and help countries withstand economic shocks.
• Resilient global value chains: The benefit of trade is predominantly manifested through GVCs. The large heterogeneity among G20 members in terms of their participation in GVCs needs to be addressed to make trade more equitable and sustainable.
• Integrating MSMEs in GVCs: MSMEs often provide better value for money with their low cost of operations. Furthermore, MSME clusters can also provide economies of scale in particular production chains. Therefore, in a way MSMEs form a cornerstone of a country’s participation in crucial GVCs. The G20 countries must come together with policies which drive greater MSME participation in GVCs.


• Logistics for trade: A robust logistical infrastructure is important for a stable GVC. There is much difference among the G20 members in terms of their trade logistics. There should be deliberations to address this issue.
• WTO reform: As the role of WTO is continually ignored by countries in their endeavour to make geopolitically favourable trade blocs, it needs to be understood that equitable and sustainable trade is impossible without a well-functioning multilateral body like WTO.

Some more recommendations

Apart from the above points already taken up by India, there are some more recommendations that may be essential for greater trade and investment liberalisation. These are:

• Efforts should be made to lower trade and transaction costs and this can be done by lowering non-tariff barriers, much of which is not visible in terms of Guidelines and notifications. It also needs to be ensured that there is stability of currency regimes. Once this is done, issues of inflation control will come on its own. Further, efforts should be made to solve all disputes through government-to-government discussions rather than wars and skirmishes.
• There should be cohesion between industrial policy, manufacturing policy and trade policy. Tariffs should be the main instrument of protection and should be imposed by having the lowest on raw materials and highest in final goods to enable value additions.
• is important to invest in assistive technologies as the demographic profile is changing in many of the G20 countries so that it is possible for the society to benefit from such technologies.

SIGNIFICANCE OF INDIA’S PRESIDENCY

FOR this one year, India has hosted around 200 meetings in more than 50 cities across 32 different workstreams. When the entire world is engaged in repairing the damages done by the unprecedented medical crisis followed by a pandemic and subsequent slowdown in socio-economic activities, but still faces an uncertainty due to geopolitical crisis is Russia and Ukraine, the G20 presidency comes as a big opportunity for India to showcase India’s capability to be at the centre of the global economic order.

India’s position in global economy

India has shown enough resilience to global challenges. It is one of the fastest-growing economies of the world and has been one to achieve quick recovery by withering the adverse impact of the pandemic, driven by exemplary supportive measures from the government. The domestic economy came back to the growth path due to business-conducive measures of the government and record-breaking recovery of exports. In fact, the Indian economy in the last few years has been in the eye of the developed economies as a strategically important trade partner, one of the most attractive investment destinations and an alternative to China as a global supplier. Reform-friendly measures of the incumbent government took foreign direct investments (FDI) to an all-time high, kept interest rate at a balanced level to make businesses attractive but not at the cost of the common people, and above all marked significant improvement in Doing Business Ranking from 130 to 63 in just four years. Slowly but steadily, India has been continuously raising its recognition on the global platform.

India’s increasing importance

India’s increasing importanceThe socioeconomic and geopolitical crises that started since the beginning of the pandemic has shown India’s ability to withstand challenges in a clear manner and that prompted the developed world to consider India as a self-defined democratic power holding great promise for the world order. Especially after watching the strength of India to shrug off the pandemic shock and regaining the pace of economic activities within a short span of time, India’s leadership is being relied upon and perception about its capacity to resist partisan pressures from either side is growing.

The world now realises that even with nearly 40 percent of its population living in poverty, India is able to proportionately shoulder the world’s economic burden as it accounts for 15 percent of global growth, according to the IMF.

Issues at stake

The issues under India’s presidency have been framed strategically by keeping a cautious eye on the turns and twists of the global economy since the medical crisis. The Finance Track has focused on financing for infrastructure, financing for healthcare, financial sector policy changes, and financing for sustainable growth under the eight working groups. The Sherpa Track focus is on 13 issues such as anti-corruption, agriculture, digital economy, and climate change, besides two initiatives – G20 EMPOWER and Research and Innovation Initiative Gathering (RIIG). While the former aims to empower women and accelerate their leadership in the private sector by leveraging alliances between business leaders and G20 countries, the latter stresses on enhancing and strengthening research and innovation collaboration among the G20 member countries. Finally, the 11 Engagement Groups, consisting of non-government participants from G20 member countries, are working on the policy recommendations.

SCOPE OF TECHNOLOGICAL ALLIANCES

TECHNOLOGICAL alliances among G20 nations have become increasingly important in recent years. As technology advances, so does the need for global collaborations to maximise the benefits of these advances. Governments around the world have begun to provide financial and other incentives for international technology collaborations. These incentives range from direct funding to tax breaks and other incentives for businesses to engage in international collaborations.

These alliances are seen as a way for G20 nations to come together to share and develop cutting-edge technologies, as well as to promote economic growth and international collaboration. One of the key goals of technological alliances among G20 nations is to promote innovation. Through these alliances, Companies, governments, universities, and other organisations are engaging in global initiatives to share and build upon the latest technological advances. These collaborations can take many forms, from joint research projects to the sharing of resources, personnel, and expertise. The benefits of international technology collaborations are numerous, from the access to new ideas and technologies to the development of products and services for global markets.

In addition, technological alliances can help G20 nations to create more efficient and cost-effective ways of doing business, which can be equally beneficial for small manufacturing entities, as well as to increase their competitiveness in the global market. By sharing resources and expertise, G20 nations can develop new technologies and solutions that can give them a competitive advantage in the marketplace.

Finally, technological alliances among G20 nations can help to foster and gain a better understanding of each other’s cultures, values, and governments, enabling them to better collaborate in the future.International technology collaborations have become increasingly important in the modern world. At the same time, international technology collaborations are not without their challenges. Language barriers and cultural misunderstandings can impede progress. Moreover, international collaborations between businesses, universities, and governments can lead to issues of intellectual property and privacy. Despite the challenges, international technology collaborations are essential for the development of innovative products and services.

Technology collaborations for small manufacturing units

Technology collaborations can be very useful to support the growth of small manufacturing units, which are the backbone of developing and emerging economies. These small units are helping to build G20 economies in several ways: Job creation: Small manufacturing units can create employment opportunities, particularly in rural and underdeveloped areas where formal job opportunities may be limited. By providing jobs, small manufacturing units can help reduce unemployment and improve the standard of living for individuals and families.

Innovation and entrepreneurship: Small manufacturing units are often more nimble and flexible than large companies, and can be more responsive to changing market conditions. They can also be a source of innovation and entrepreneurship, developing new products, processes, and business models that can drive economic growth.

Local development: Small manufacturing units can contribute to the development of local economies by purchasing materials and services from local suppliers, and by creating a market for locally produced goods and services.

Export earnings: Small manufacturing units can generate export earnings, particularly in niche markets where larger companies may not have a presence. This can help to improve a country’s balance of payments and reduce its dependence on imports.

Reduced regional disparities: Small manufacturing units can help to reduce regional disparities by providing economic opportunities in areas that may otherwise be neglected by larger companies. This can contribute to a more balanced and inclusive economic growth.

Innovation and technology

Innovation and technology can help small manufacturing units in several ways, including:

Improving efficiency and productivity: By adopting new technologies, small manufacturing units can improve their efficiency and productivity, reducing production costs and increasing output. For example, automation technologies can help to streamline production processes, while digital technologies can help to manage inventory, orders, and shipments more efficiently.

Enhancing quality and consistency: Advanced manufacturing technologies can help small manufacturing units to improve the quality and consistency of their products, reducing defects and improving customer satisfaction. For example, advanced analytics and quality control systems can help to identify and resolve production issues more quickly and effectively.

Expanding product lines and markets: Innovation and technology can help small manufacturing units to develop new products and services, and to enter new markets. For example, by adopting additive manufacturing technologies, small manufacturing units can produce complex and customised products with a lower investment in tools and molds, while digital marketing and e-commerce platforms can help small manufacturers to reach new customers and markets.

Reducing environmental impact: Advanced manufacturing technologies can help small manufacturing units to reduce their environmental impact, through improvements in energy efficiency, waste reduction, and sustainable sourcing. For example, by adopting renewable energy sources and implementing closed-loop production systems, small manufacturing units can reduce their carbon footprint and enhance their sustainability.

Overall, innovation and technology can help small manufacturing units to remain competitive and adaptive in an ever-changing business environment, enabling them to improve their productivity, quality, and environmental sustainability, while expanding their markets and product lines.

TECHNOLOGY INITIATIVES OF G20 MEMBERS

TO highlight some of the programmes, schemes and initiatives of the G20 members that promote international technological collaborations, we present a compilation to serve as quick reference to explore technological collaboration opportunities.

EUROPE

Horizon Europe: EU’s flagship research and innovation programme for the period 2021-27. It provides funding for collaborative research projects between universities, research institutions, and companies from different countries to tackle global challenges and support innovation.

European Innovation Council (EIC): A one-stop shop for innovation support in Europe, providing funding, networking opportunities, and technical assistance to startups and SMEs. The EIC also connects European startups with investors, accelerators, and corporations worldwide.

European Investment Fund (EIF): A EU agency that provides funding to small and medium- sized enterprises (SMEs) and startups in Europe. The EIF invests in venture capital funds and provides guarantees and loans to companies to support their growth and innovation.

Eurostars: A joint programme between the European Commission and Eureka, which supports R&D projects led by SMEs in collaboration with partners from other countries. It provides funding to develop innovative products, processes, and services that have strong commercial potential.

European Strategic Cluster Partnerships (ESCPs): Partnerships between clusters from different countries that work together to promote innovation and collaboration in a specific sector. They provide support for SMEs to access new markets, develop new products and services, and share knowledge and expertise.

Eureka: A network of 45 countries, including Italy that supports international cooperation in R&D . The network provides funding and support for collaborative projects between companies, research institutes, and universities.

Startup Europe: An initiative that supports startups and entrepreneurship in Europe. It provides funding, mentoring, and networking opportunities for startups to scale up their businesses and expand into new markets.

Startup Europe: An initiative that supports startups and entrepreneurship in Europe. It provides funding, mentoring, and networking opportunities for startups to scale up their businesses and expand into new markets.

USA

Global Innovation Policy Accelerator (GIPA): A US Department of State initiative that aims to help countries develop and implement innovation policies. It promotes international technology collaborations by providing a platform for policymakers, industry leaders, and researchers to share best practices and collaborate on innovation policy issues.

Global Connect Initiative (GCI): Government effort to bring internet access to the 1.5 billion people around the world who currently lack it. The initiative promotes international technology collaborations by encouraging private sector investment in internet infrastructure and supporting the development of innovative internet technologies.

International Entrepreneur Rule: Allows foreign entrepreneurs to apply for temporary residence in the US if they have a startup that shows promise of creating jobs and generating economic growth. The rule promotes international technology collaborations by providing a platform for foreign entrepreneurs to start and grow their businesses in the US.

National Science Foundation (NSF): The NSF International Programs promote international collaborations in science and engineering. They support joint research projects between US scientists and their counterparts in other countries and provide funding for US graduate students and postdoctoral researchers to conduct research abroad.

US Department of Energy’s Office of International Affairs: Promotes international technology collaborations in energy R&D . The office works with foreign governments, industry partners, and other stakeholders to advance clean energy technologies and strengthen global energy security.

USAID Global Development Lab: Promotes international technology collaborations to address global development challenges. It supports the development of innovative technologies and partnerships between US and international organisations to improve health, agriculture, education, and other sectors.

US Patent and Trademark Office Global Intellectual Property Academy: Provides training and technical assistance to intellectual property (IP) professionals around the world. The academy promotes international technology collaborations by helping foreign innovators protect their IP rights and develop strategies for commercialising their inventions.

UNITED KINGDOM

Innovate UK: A public body that provides funding and support to innovative businesses in the UK, including startups, SMEs, and large companies. It provides funding for collaborative R&D projects between UK and foreign companies and institutions, with a focus on emerging technologies.

Global Entrepreneur Programme: A government initiative that supports entrepreneurs from overseas to establish and scale up their businesses in the UK. The programme provides mentoring, support, and visa assistance to help entrepreneurs relocate to the UK.

Newton Fund: A government initiative that provides funding for research collaborations between the UK and emerging economies, with a focus on scientific and technological innovation. The programme aims to promote economic development and social welfare in partner countries.

International Business Innovation Zone: A network of innovation hubs across the UK that supports foreign companies to set up a presence in the UK. The hubs provide office space, networking opportunities, and support for market entry and expansion.

Tech Nation Visa: A fast-track visa scheme for exceptionally talented individuals in the tech sector who want to work in the UK. The visa is available to entrepreneurs, founders, and technical specialists in the tech sector, providing them with a streamlined route to enter the UK.

Industrial Strategy Challenge Fund: A UK government initiative that provides funding for R&D projects in priority areas, including artificial intelligence, clean energy, and robotics. The programme aims to drive innovation and economic growth in the UK, with a focus on collaboration between companies and institutions.

ITALY

Italy is a member of the EU programme, which provides funding and support for collaborative projects in science, technology, and innovation.

Start-up Visa: Encourages foreign entrepreneurs to launch their businesses in Italy. The programme provides support for visa applications, mentoring, and access to funding.

European Institute of Innovation and Technology: Italy is a member of the EU EIT network, which provides funding and support for startups, innovation projects, and training programmes.

European Institute of Innovation and Technology: Italy is a member of the EU EIT network, which provides funding and support for startups, innovation projects, and training programmes.

National Research Council (CNR): Italy’s largest public research institution, the CNR conducts research in a wide range of fields, including science and technology, and collaborates with research institutions and companies around the world.

National Innovation Fund: A government initiative that provides funding and support for innovative projects in Italy. The fund supports collaborations between Italian companies and international partners in areas such as renewable energy, advanced manufacturing, and biotechnology