UPSC Prelims 2023 Q100: G20 Origin and India's Presidency — Explained
Consider the following statements about G-20:
1. The G-20 group was originally established as a platform for the Finance Ministers and Central Bank Governors to discuss the international economic and financial issues.
2. Digital public infrastructure is one of India's G-20 priorities.
Which of the statements given above is/are correct?
- 1 only
- 2 only
- Both 1 and 2
- Neither 1 nor 2
Answer: (c) Both 1 and 2
Statement-wise explanation
- 1: correct — The G20 was set up in 1999, after the Asian and other financial crises of the late 1990s, as a meeting of Finance Ministers and Central Bank Governors. They met to discuss international financial and monetary policy, reform of international financial institutions and economic development. Heads of State or Government first met as the G20 only in November 2008, in Washington, during the global financial crisis. So the statement correctly describes the group's original form.
- 2: correct — India held the G20 Presidency from 1 December 2022 to 30 November 2023 under the theme 'Vasudhaiva Kutumbakam – One Earth, One Family, One Future'. Leveraging digital public infrastructure (DPI) for inclusive growth was a headline priority. The Digital Economy Working Group, led by MeitY, named DPI as one of its three priority areas, alongside security in the digital economy and digital skilling. India offered Aadhaar, UPI and DigiLocker as models, and the presidency built a global DPI repository.
How to eliminate
Absolute words do not help here. Neither statement uses 'only', 'always' or 'all'. Both are worded carefully and positively. Basic knowledge settles statement 2. In the months before the May 2023 exam, India's G20 Presidency events, including the DPI symposium held before the Bengaluru Finance Ministers' meeting in February 2023, were widely reported, and 'Digital India' and UPI were promoted as India's offer to the Global South. Once you accept statement 2, you are choosing between '2 only' and 'Both'. Statement 1 then turns on one fact you need to remember: the G20 began in 1999 at the level of Finance Ministers and Central Bank Governors, and became a Leaders' Summit only in 2008. The G20 still runs a separate 'Finance Track' of these ministers and governors next to the Sherpa Track. That is a strong clue that the finance track came first.
Know more
G20 at a glance
The G20 has no permanent secretariat. It is run by a rotating Presidency, helped by a Troika (the previous, current and next presidencies). Its members are 19 countries, the European Union and, since the 2023 New Delhi Summit, the African Union.
| Milestone | Detail |
|---|---|
| 1999 | Created after the late-1990s financial crises as a forum of Finance Ministers and Central Bank Governors |
| Nov 2008 | First Leaders' Summit (Washington) during the global financial crisis |
| 2009 | Leaders call the G20 the 'premier forum for international economic cooperation' |
| 2023 | India's Presidency; New Delhi Leaders' Summit, 9–10 September 2023 |
| 2024 | Brazil's Presidency |
Two tracks
- Finance Track: Finance Ministers and Central Bank Governors handle macroeconomic, financial and tax issues. This was the G20's original form.
- Sherpa Track: the leaders' personal envoys coordinate working groups on topics such as digital economy, health, culture and development.
India's Presidency (Dec 2022 – Nov 2023)
- Theme: Vasudhaiva Kutumbakam – One Earth, One Family, One Future.
- Priorities included green development and LiFE, accelerated and inclusive growth, progress on the SDGs, technological transformation and digital public infrastructure, reform of multilateral institutions, and women-led development.
- Outcomes: the New Delhi Leaders' Declaration, the African Union admitted as a permanent member, and a G20 framework and global repository for DPI.
What DPI means: shared, interoperable digital systems built as public goods for identity (Aadhaar), payments (UPI) and data exchange (DigiLocker, consent-based data sharing). Private and public services can be built on top of them.
In the news
India took over the G20 Presidency on 1 December 2022. In the months before the May 2023 Prelims, it hosted G20 meetings across the country, including Digital Economy Working Group meetings focused on DPI and the first Finance Ministers and Central Bank Governors meeting in Bengaluru in February 2023.
NCERT Concepts to Revise
- Digital public infrastructure: Statement 2 turns on what 'digital public infrastructure' means, as distinct from ordinary e-governance.
- Vasudhaiva kutumbakam: India's G20 Presidency theme was built on this phrase. It anchors questions on the presidency's agenda.