G20: Delhi Declaration puts Startups, MSMEs on Centre Stage

The G20 New Delhi Leaders’ Declaration that was unanimously adopted by all the participating world leaders has brought startups and micro, small, and medium enterprises (MSMEs) to the centre stage and recognized them as “natural engines of growth”.

Among other measures for global economic growth, the declaration read, “Startups and MSMEs are key to socio-economic transformation by driving innovation and creating employment.”

Recognizing the challenges faced by MSMEs, particularly in developing nations, due to a lack of information, the declaration welcomed ‘Jaipur Call for Action for enhancing MSMEs’ access to information to promote the integration of MSMEs into international trade.

Financial inclusion of MSMEs

The leaders in the global summit, while welcoming the 2023 update on progress towards the G20 remittance target and endorsing the regulatory toolkit for enhanced digital financial inclusion of MSMEs, have endorsed the 2023 Financial Inclusion Action Plan (FIAP), which provides an action-oriented and forward-looking roadmap for rapidly accelerating the financial inclusion of individuals and MSMEs, particularly vulnerable and underserved groups in the G20 countries and beyond.

Noting the significant role of digital public infrastructure (DPI) in helping to advance financial inclusion in support of inclusive growth and sustainable development, the Delhi Charter has endorsed the voluntary and nonbinding G20 policy recommendations for advancing financial inclusion and productivity gains through DPIs.

Fostering New-age Digital Ecosystems

Advocating for safe and resilient digital ecosystems with the deployment of all available digital tools and technologies and ensuring the financial inclusion of the last man standing, the declaration has committed to promote responsible, sustainable, and inclusive use of digital technology by farmers and an ecosystem of agri-tech startups and MSMEs.

The declaration has also committed to halving the digital gender gap by 2030 and promoting and implementing gender-responsive policies to create an enabling, inclusive, and non-discriminatory digital economy for women-led and women-owned businesses, including MSMEs.

Emerging Voice of Global Startup Ecosystem

The continuation of ‘Startup20 Engagement Group’ in the next year’s G20 presidency of Brazil is being seen as a feather in India’s cap. Startup20 Engagement Group was launched during India’s G20 presidency. The programme led by India will bring together various stakeholders on a common platform and create a global narrative for supporting new ideas and synergies between startups, corporations, and investors.

In July this year, Saudi Arabia became the first country to support the call for the allocation of USD 1 trillion as annual investment in the startup ecosystem.

In its recommendations published in Startup20’s final meeting in July this year, the forum urged the countries to include and pay special attention to startups by entrepreneurs from underrepresented groups. It also called for a policy framework to strengthen the startup ecosystem within and across G20 countries.

At the two-day summit, Chinese President Xi Jinping and Russian president Vladimir Putin remained the most talked-about absentees.

The leaders managed to be on a similar platform over the Russia-Ukraine conflict. The New Delhi Declaration has been able to include the mention of the war. It said, “Today’s era must not be of war.” The leaders also underscored that all states must act in a manner consistent with the Purposes and Principles of the UN Charter in its entirety.

Along with a consensus on the Ukraine war, the member countries of the grouping have also committed to sustainable and balanced growth. The declaration read, “We commit to accelerate the full and effective implementation of the 2030 Agenda for Sustainable Development.”

The leaders also condemned all forms of terrorism and committed to meet the needs of the Financial Action Task Force (FATF) and FATF Style Regional Bodies. According to the government officials, all 83 paragraphs of the declaration were adopted unanimously.

World leaders were welcomed with the motto of “One Earth. One Family. One Future”.

Inclusion of the African Union as the permanent member of the bloc remained one of the major achievements for India during its presidency. Since the formation of the bloc in 1999, this is the first time a new member has been added to the grouping.

The declaration focused on the need to accelerate efforts to phase down unabated coal power, in line with national circumstances. Leaders will work towards facilitating low-cost financing for developing countries to support their transition to low carbon. Efforts will be made to triple renewable energy capacity globally through existing targets and policies, in line with national circumstances by 2030.