G20 Summit's Impact on the Indian fashion industry
05 April 2023, Mumbai
The Group of Twenty (G20) began in 1999 as a platform for finance ministers and central bank governors to discuss economic and financial issues, especially in the aftermath of the late 1990s financial crisis that affected Southeast Asian nations.
In 2007, the G20 expanded to include heads of state and government. Significant Industry Impact; The G20 is comprised of 19 nations from different continents, along with the European Union, which accounts for nearly 85% of the global GDP with far-reaching implications.
Historically, the G20 Summit has globally contributed to clearing the way for international trade, commerce, and economic cooperation. The Indian fashion industry has visibly gained from incremental exports and access to both conventional & non-conventional international markets, uplifting revenue, market share, and growth.
Fashion is where 'Style Meets Comfort with Elegance & Smartness'
We have to state here that, the" Fashion industry which is a hotbed of innovation & creativity is a global economic powerhouse that has remarkable political and social ramifications. Again, The G20 Summit's decisions have the underlying potential to impact & influence the Indian fashion industry, which by all means is a major contributor to the nation's economy.
Events like The G20 Summit are known to foster a feel-good factor creating a positive/buoyant sentiment for the sectors like fashion space where typically discretionary spending drives sales & volumes up, boosting the industry's morale and possibly attracting investment and creating jobs.
Boosts Indian fashion exports
The economic consequences have renewed the need for the G20, a forum for international economic cooperation, which has the potential to impact various industries, much of the influence wielded is because most evidently fashion sector is poised to take on a leadership role.
In this article, we will attempt to figure out exploring how the G20 Summit whether you like it or not is likely to influence the Indian fashion industry.
The G20 Summit by design is a constructive platform, which brings together the world's tallest economies, and evidently, it has an enduring impact on the Indian fashion industry.
In times when there is an imperative need for concerted & collaborative global cooperation/shared values & resources and trade agreements, This only gives Indian designers greater access to global markets. Stepping back, In 2019 India's apparel and textile exports to G20 countries amounted to $38.48 billion.
Preface
Fundamentally, non-member nations such as Bangladesh, Singapore, Spain, and Nigeria are invited to participate in G20 meetings, alongside international organizations such as the United Nations, World Health Organization, World Bank, and International Monetary Fund (IMF).
Despite its importance, the G20 has some drawbacks. For example, it lacks a permanent secretariat and each year, a member assumes the presidency to guide the agenda of the conference.
There are two tracks to the conference, one headed by finance ministers and the other by representatives of the presidents of member nations.
G20: Indian voice for the global south
India's chairing of the G20 Summit allows it to become a global ambassador shaping global economic policy. So in this momentous year, India is the G20 chair, and Brazil and South Africa will assume the presidency in 2023 and 2025, respectively.
India will host over 200 meetings in 50 places in the lead-up to a major summit in New Delhi in September 2023, which is expected to be attended by more than 30 state and government leaders from G20 members and invited nations.
The theme of India's G20 Presidency - “Vasudhaiva Kutumbakam”; Indian Prime Minister Narendra Modi has appealed for international collaboration to address global concerns, including climate change, terrorism, and pandemics, stating that these problems can only be tackled by acting together.
He also stressed the need to depoliticize the global supply of food, fertilizer, and medical items to prevent humanitarian disasters from being sparked by geopolitical conflicts. Modi's remarks reflect New Delhi's position that the Ukrainian war needs to be settled via negotiation and diplomacy.
When asked about Russia's participation in the G20 during India's term as president, the Indian foreign ministry responded that since Russia is a member, they expect Russia to participate in the process, as the grouping needs to speak with one voice on important issues affecting the world.
Election triumph strengthens Modi's global presence; Hosting the G20 may strengthen Modi's reputation as a leader of significance, particularly given the summit's timing before India's general elections in 2024.
Modi also has good relationships with several G20 counterparts, including French President Emmanuel Macron and American Vice President Joe Biden.
However, the current geopolitical and economic environment may make it difficult for India and Modi to influence global reactions to several crises. Experts suggest that India should use its participation in organizations like the G20 to move from being a "rule-taker to a rule-maker."
The best is yet to come
In conclusion, while the G20 is an important international event that brings together leaders from around the world to discuss economic and social issues, its direct impact on specific industries, such as the fashion industry in India, may depend on a variety of factors.
Growing & rising India; The G20 Summit can have a crucial impact on the Indian industry bringing in huge opportunities & challenges, contingent on the economic policies and decisions made during the summit.
Given the background of global macro challenges & developing geopolitics where uncertainty has become new certainty the very timing and circumstances of the summit can also affect the amount of impact on the Indian industry.
This shall likely result in improved revenue and economic gains/growth for the country as a tailwind. However, hosting the G20 may help strengthen India's position as a leader on the global stage and provide opportunities for India to influence multilateral rules.
What is important to remember is 'The G20 Summit' will embolden give a fillip & paving the way for sustained growth and success in the Indian fashion industry, throwing up limitless opportunities for innovation, collaboration, and expansion on the horizon.
