India's growth remains the highest among major economies: DEA Secretary Ajay Seth

During the G20 meetings, the robustness of India's growth rate was acknowledged and appreciated by global leaders. However, Seth expressed concern over certain specific factors that may affect the country amidst the subdued global growth and trade volumes.

Furthermore, the G20 deliberations focused on spillover effects and how to manage the impact of inflation on different sectors, especially in light of slower global growth rates and elevated energy and commodity prices. The meeting acknowledged that global inflation continues to be fairly elevated, leading to restrictive monetary policy rates and stances in many advanced countries.

"It is quite obvious that the global economy was discussed and one full session was there on discussion on the economy, considering that the energy and commodity prices are off their peak," he said.

"Nevertheless, inflation in major economies, especially in advanced countries, continues to be fairly elevated. As a result, the monetary policy rates and monetary policy stance remain restrictive. Inflation rates are high and are likely to remain higher. This creates a spillover to other sectors as well."

While G20 leaders discussed various measures to address these spillovers, there were certain geopolitical issues that prevented the adoption of a complete communique. Concerns raised by Russia and China specifically led to the omission of three paragraphs from the final document.

One of the notable issues was Russia's reluctance to associate with a G20 study on the macroeconomic impact of energy and food insecurity, as it referenced the Russia-Ukraine war. Nonetheless, the majority of the G20 members reached a consensus on other aspects of the meeting.

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