US Treasury Secretary Yellen’s India Visit and the G20 Summit: A Focus on Global Economy, Geopolitics, and India’s Rising Influence

In a significant development, Janet Yellen, the US Treasury Secretary, is set to make her fourth visit to India in just 10 months. Her visit coincides with the G20 leaders’ summit scheduled to be held in New Delhi on September 9 and 10. This visit holds immense importance as it encompasses several key aspects: strengthening the global economy, supporting low- and middle-income countries, addressing geopolitical concerns, and deepening US-India bilateral ties.

1. Strengthening the Global Economy and Supporting Developing Nations:

A primary focus of Yellen’s visit to India is to strengthen the global economy and provide support to low- and middle-income countries. The US Treasury Department has outlined specific areas of interest, including debt restructuring, the evolution of multilateral development banks (MDBs), and bolstering resources for the International Monetary Fund (IMF) trust fund. These initiatives aim to alleviate the financial burden on developing nations and foster economic stability in an increasingly interconnected world.

2. Geopolitical Concerns:

Yellen’s visit also carries a strong geopolitical dimension. The United States is keen on rallying its G20 allies to maintain economic support for Ukraine and impose additional costs on Russia due to the ongoing conflict in Ukraine. This involves backing the G7-led price cap on Russian oil exports, a move aimed at pressuring Russia to change its course. Additionally, efforts to strengthen global food security are on the agenda, given restrictions on Ukrainian grain exports. This reflects a coordinated international response to address a complex geopolitical crisis.

3. India as an Alternative to China:

Simultaneously, the US Treasury Secretary intends to deepen bilateral ties with India. The United States views India as a strategic partner and an alternative to China in terms of investment and supply chains. This perspective aligns with the global shift towards diversifying supply chains and reducing dependency on any single nation. India’s growing economy, attractive markets, and skilled workforce make it an appealing destination for investments and collaboration in various sectors.

4. Chinese President Xi Jinping’s Absence:

Notably, Chinese President Xi Jinping is expected to skip the G20 Summit. Reports suggest that China is wary of conferring too much influence on India, a regional powerhouse with a rapidly growing economy. China’s decision to send Premier Li Qiang instead of President Xi underscores its cautious approach towards India’s rising stature on the global stage. The move reflects the delicate balance of power dynamics in the region.

5. Other Leaders’ Absences:

In addition to Xi Jinping, Russian President Vladimir Putin has also opted out of the summit and will be represented by Foreign Minister Sergei Lavrov. These absences highlight the complexities of global politics and regional dynamics. Each leader’s choice of representation sends nuanced signals about their priorities and alliances.

6. India’s Rising Influence:

Lastly, the G20 summit serves as a platform to showcase India’s growing influence. India, having recently achieved a successful lunar landing and positioning itself as a rising power, seeks to attract global attention. The country is actively promoting its markets and emphasizing its role as a source for diversifying global supply chains. India’s assumption of the G20 Presidency further solidifies its status as a key player in international affairs.