India is also alert about the hugely increasing debt in the world, finding a solution will be discussed in the G-20 meeting

Six months have passed since the India-led G-20 summit. Despite the passage of more than six months, no action has been taken regarding the consensus reached by the member countries at this summit regarding the solution to the problem of increasing debt in the world.

In such a situation, now the focus is on the meeting of finance ministers and central bank governors of G-20 member countries in Brazil in June and July so that a universal consensus can be reached regarding the recovery of outstanding debt of poor and developing countries.

India will also participate in these meetings to be held in Brazil and will fully cooperate with the host country Brazil to solve the problem. In this context, India will also support the new proposal being prepared by the IMF-World Bank to provide relief to poor and middle-income countries.

India is in favor of a campaign to quickly solve the problem arising from the increasing debt of many countries in the world. The reason is that India is worried that if this problem becomes more serious then it will have a negative impact on their economic development.

Sources said that there is a meeting of the working group of G-20 on the international financial system from June 10 to 12, 2024. After this, there is a meeting of deputy governors of G-20 central banks on 22-23 July. After this, there is a ministerial meeting on July 25, and along with it, there will be a meeting of central bank governors.

The new Finance Minister of India may participate in this meeting. General elections are currently going on in India, the result of which will be declared on June 4, 2024. There are many issues on the agenda in the ministerial meeting to be held in July, which were discussed in the India-led meeting last year but a final consensus could not be reached. For example, the IMF has to decide on a new quota system for loan distribution.

This also includes the agenda of reducing the debt burden on countries that are sensitive to the global economy or giving more facilities to these countries to repay their loans. Just before this meeting, a meeting of the Paris Club (a group of lending countries) is also going to be held under the leadership of Brazil in June 2024 on the same issue.

The report that the RBI released last week demonstrates India's disquiet over the growing amount of debt on a worldwide scale. The global debt, according to this report, stands at 2,35 billion dollars, or 238 percent of all nations' GDP. The paper expresses concern that loan repayment is not receiving the special attention it deserves because of the numerous elections taking place around the world, and that this issue could get worse in the years ahead.

In comparison to ten years ago, the amount of interest that all countries now pay on their external debt has increased fivefold. Repaying debt is taking up a large portion of national budgets, far more than funding the health and education systems.

This may increase global uncertainty and may spoil the environment of improvement in the global economy after COVID-19. This may deal a blow to India's efforts to join the ranks of developed countries by the year 2047 through rapid economic growth. These are some of the reasons why India is also emphasizing finding an early solution to the growing global problem of debt.