All for Small: On Focus on the Small Enterprises

GS Paper III Indian Economy

Context:

Recently, a meeting of Trade and Investment Ministers of the G-20 nations was held in Jaipur.

Significance of the G20 Bloc:

1.4 2

Points of Agreement:

Agreement was made among the G-20 nations to take joint actions to reaffirm the world’s faith in cross-border commerce and investment flows as a route to prosperity and growth for all.

Point	Example
Digitalisation of trade documents	Using electronic signatures, blockchain, and other digital technologies to streamline the exchange of trade documents such as invoices, shipping manifests, and certificates of origin.
Enhancing information access to MSMEs	Providing MSMEs with access to trade data and market intelligence, such as through online platforms and training programs.
Framework to map global value chains	Developing a common framework for tracking the flow of goods, services, and data through global value chains. This can help to identify potential bottlenecks and opportunities for efficiency gains.
Best practices on mutual recognition agreements for professional services	Sharing best practices on how to negotiate and implement mutual recognition agreements (MRAs) for professional services. MRAs can help to facilitate the movement of skilled workers across borders.
Standards dialogue	Promoting dialogue and cooperation on standards development and implementation. This can help to ensure that standards are harmonized and that they do not create unnecessary barriers to trade.

Focus on the Small Enterprises:

Result Oriented: The ‘Jaipur Call for Action to enhance Micro, Small and Medium Enterprises’ (MSMEs’) access to information’ may yield quicker and more tangible results.
Interest shown by other Organizations to work together: The International Trade Centre, WTO and UNCTAD, that operate the Global Trade Helpdesk, have been urged to work with G-20 members to upgrade their data portal for businesses and bridge the information asymmetry.
Societal Improvement: This resonates with the Indian Prime Minister’s plea that G-20 Ministers strive to help MSMEs which account for 60%-70% of employment and 50% of the global GDP, integrate with global value chains as empowering them translates to societal empowerment.

Conclusion:

There has been convergence on major issues in trade ministerial meetings among member G20 countries but acknowledged that there are some realities on which there is “no possibility of a consensus” like the Russia-Ukraine war.
As a huge representative of the world, it is the responsibility of G20 Nations to rebuild confidence in international trade and investments and build resilient and inclusive global value chains that can withstand future shocks.

News Source: The Hindu