Iran, trade tensions, energy security top India’s G20 agenda
Asheville: Energy security, mounting trade tensions and Washington’s efforts to intensify economic pressure on Iran are expected to be among India’s principal concerns when Finance Minister Nirmala Sitharaman attends the G20 Finance Ministers and Central Bank Governors meeting here on Monday.
Sitharaman arrived at Greenville-Spartanburg International Airport in South Carolina on Sunday and was received by India’s Ambassador to the United States, Vinay Mohan Kwatra.
“The Union Finance Minister is scheduled to participate in the G20 and associated meetings in Asheville, North Carolina, over the next two days,” India’s Ministry of Finance said in a post on X.
US Treasury Secretary Scott Bessent will host finance ministers and central bank governors from the world’s largest economies on Monday and Tuesday. The meeting will focus on reviving global growth, reducing economic imbalances, addressing sovereign debt and strengthening supply chains.
For India, the economic consequences of the Iran conflict and disruption to commercial traffic through the Strait of Hormuz will be particularly important. Higher crude oil, natural gas, freight and insurance costs could increase India’s import bill, contribute to inflation and place pressure on the rupee.
New Delhi will also be watching Washington’s attempt to persuade G20 members to support tougher economic measures against Iran. The Trump administration is expected to press countries to reduce commercial links that it believes provide Tehran with an economic lifeline.
India maintains longstanding relations with Iran and has economic and strategic interests in the region, including the Chabahar port project. New Delhi will have to balance those interests with its expanding strategic and economic partnership with Washington.
Trade imbalances will be another major subject. The United States wants the G20 to examine industrial policies that encourage excess production and allow heavily subsidised goods to enter international markets.
Although US officials have not publicly named China while outlining this part of the agenda, their description reflects longstanding American concerns about Beijing’s export-oriented economic model.
India has its own concerns about the effect of low-cost Chinese imports on domestic industries, including steel, chemicals, electronics and renewable-energy manufacturing. However, New Delhi is also expected to caution against unilateral tariffs and protectionist measures that could adversely affect emerging economies.
Sitharaman is likely to use the discussions and associated meetings to position India as an alternative manufacturing and investment destination as international companies reassess their supply chains.
During a business roundtable in Chicago ahead of the G20 meeting, Sitharaman urged global companies to establish manufacturing bases and technology and innovation centres in India.
“The policy environment is increasingly focused on enabling businesses to invest, manufacture, innovate and expand,” she said.
The Finance Minister asked investors to consider India not merely as a large consumer market but as a platform for manufacturing, innovation and exports.
“As global companies reassess supply chains and capital allocation, India offers not only scale as a market, but increasing depth as a long-term investment and operating platform,” she said.
Sitharaman highlighted opportunities in manufacturing, artificial intelligence, digital technologies, financial services, infrastructure, food processing, defence and advanced technologies.
Sovereign debt will also figure prominently in the Asheville deliberations. India has previously advocated faster and more transparent restructuring for debt-distressed countries and greater cooperation among multilateral institutions and major creditors.
New Delhi is also expected to maintain its support for reforming multilateral development banks and expanding their capacity to finance infrastructure and development programmes in emerging economies.
Bessent said in a post on X after arriving in Asheville that the US was prioritising growth as host of this year’s G20 Finance Track.
“We look forward to convening policymakers and private sector leaders from around the globe to emphasize that stronger growth is not only possible, but necessary,” he said.
The Asheville meeting is part of the Finance Track leading to the G20 leaders’ summit, which President Donald Trump is scheduled to host in Miami in December.