What's In For Indian Startups in New Delhi Leaders' Declaration?

In a landmark moment, the G20 members achieved a historic 100% consensus on the opening day of the summit, unanimously adopting the New Delhi Leaders' Declaration. The declaration, announced by Prime Minister Narendra Modi, has been described by the government as "historic and pathbreaking."

While addressing a wide range of global issues, the declaration contains focused paragraphs that aim to enhance the startup ecosystem, promote ease of doing business, and reduce the cost of doing business. Additionally, it focuses on addressing challenges faced by Micro, Small, and Medium-sized Enterprises (MSMEs) and advocates for their integration into international trade.

What Was The Role of Startup20 Under G20?

A dedicated Start20 Summit under G20 was held in the national capital in July. A joint communique was release by the Startup20 Chair Dr Chintan Vaishnav. The Communique paved a roadmap for the G20 nations to boost the overall startup ecosystem. 

Under the Communique the G20 nations committed to invest USD 1 trillion in the startups by the year 2030.

How Will Declaration Empower the Startup Ecosystem?

Recognizing the pivotal role of startups in driving innovation and creating employment, the New Delhi Declaration emphasizes support for these dynamic enterprises. It welcomes the establishment of the Start-up 20 Engagement Group during India's G20 Presidency and its continued operation. This group is expected to play a crucial role in facilitating collaboration and innovation among startups across G20 countries.

"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," the Declaration document says.

How Does The Declaration Proposes Improving Ease of Doing Business?

The G20 leaders recognize that enhancing the ease of doing business is essential for economic growth and development. By promoting a favorable environment for businesses to thrive, the declaration aims to attract investments, including Foreign Direct Investments (FDIs), toward sustainable business models. Leveraging the expertise of Multilateral Development Banks (MDBs) to create investible projects in developing countries is another important aspect of this endeavour.

Unlocking Trade for Growth: G20's Commitment to a Fair and Sustainable Multilateral Trading System

In the pursuit of fostering global economic growth and prosperity, the G20 leaders, in the Declaration, underscore the vital importance of a rules-based, non-discriminatory, fair, open, inclusive, equitable, sustainable, and transparent multilateral trading system, with the World Trade Organization (WTO) at its core.

To achieve this vision, they commit to policies that ensure a level-playing field, discourage protectionism, and curb market-distorting practices. The leaders also emphasize the urgent need for WTO reform through an inclusive member-driven process, with a goal of establishing a fully functional dispute settlement system accessible to all members by 2024. These efforts are in preparation for the WTO's Thirteenth Ministerial Conference (MC13), demonstrating the G20's dedication to constructive engagement and positive outcomes in international trade.

"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," the Declaration Document says.

Reducing the Cost of doing Business

The New Delhi Leaders’ Declaration highlights the importance of reducing the cost of doing business, which can be a significant barrier for many enterprises. By addressing market distorting practices and discouraging protectionism, G20 members aim to create a level-playing field for trade and investment. This commitment extends to the reform of the World Trade Organization (WTO) to ensure a fully functioning dispute settlement system accessible to all members by 2024.

How Will MSMEs Be Integrated into International Trade?

Micro, Small, and Medium-sized Enterprises (MSMEs) are vital engines of growth, particularly in developing countries. The declaration acknowledges the challenges these enterprises face in accessing information and, in response, welcomes the Jaipur Call for Action. This initiative seeks to enhance MSMEs' access to information, ultimately promoting their integration into international trade. Additionally, the G20 leaders endorse the Generic Framework for Mapping Global Value Chains (GVC) and High-Level Principles on Digitalization of Trade Documents to mitigate risks and enhance resilience.

Preparing for the Future of Work

In addressing the evolving job landscape, the declaration commits to bridging skill gaps, ensuring decent work, and providing inclusive social protection policies. The G20 members recognize the importance of well-integrated and skilled workers, and they aim to create well-managed, regular, and skills-based migration pathways. Efforts to map global skill gaps, develop policies, and promote digital upskilling and reskilling programs are also emphasized.

Advancing Financial Inclusion: A Priority for G20

Financial inclusion is a priority for the G20, and the declaration welcomes the 2023 Update on Progress towards the G20 Remittance Target. It endorses the Regulatory Toolkit for Enhanced Digital Financial Inclusion of MSMEs, highlighting the importance of leveraging digital public infrastructure to promote inclusive growth and sustainable development. The leaders support the responsible use of technological innovations, such as innovative payment systems, to reduce the cost of remittances and strengthen digital financial literacy and consumer protection.

A Forward-Looking Roadmap

The New Delhi Leaders' Declaration underscores the commitment of G20 members to tackle pressing global challenges. By focusing on boosting the startup ecosystem, promoting ease of doing business, reducing costs, and supporting MSMEs, the G20 is paving the way for a more inclusive and prosperous future. This forward-looking roadmap, encompassing a range of economic and trade initiatives, reflects the collective determination to drive global growth and development.

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