G20 is a club of developed and emerging economies.

Chidambaram said the membership of G20 represents a different balance of power where both advanced and emerging countries come together as equal partners allowing for more inclusive deliberation and effective response to today's complex global challenges and opportunities.

"There is a clear recognition that the dimension of development challenge vary from country to country. Therefore, any policy that is recommended at the international forum has to be tailored to national circumstances," he said.

Noting that the agenda setting of G20 has an advanced country perspective, he said, this is highlighted by the emphasis given on the financial regulation and on transparency.

"As the crisis originated in the advanced country, it is natural that higher capital requirements and asset quality have been stressed in the Basel norms for the banking sector," Chidambaram said.

Emerging markets have accepted these norms in the spirit of multilateralism, he said.

"However, in the context of a weak global recovery we should be careful that the pro-cyclical bias should not be a stumbling block in developing countries," he said.

"Since, growth in the emerging market is crucial to the strength of the global economy, it is critical the G20 finds ways to develop strong links of coordination and cooperation and take up issues of emerging economies as otherwise G20 may evolve as a loose forum instead of a powerful steering wheel of global governance," he added.

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