Sitharaman Pushes for Equitable Financial Architecture and Climate Finance at UN Meet
- India called for Multilateral Development Bank (MDB) reforms, fairer credit rating systems, and stronger global cooperation to ensure inclusive and equitable financial systems.
- FM Sitharaman highlighted India’s success in tax digitalisation, MSME credit access, and lifting 250 million people out of poverty through targeted interventions and Digital Public Infrastructure.
- India urged developed nations to enhance climate finance and ODA, and explored expanding partnerships with the European Investment Bank in sectors like metro rail, sanitation, and digitalisation.
India has reaffirmed its commitment to reforming the international financial architecture to promote inclusivity, equity, and sustainable development. Speaking at the third plenary meeting of the 4th International Conference on Financing for Development (FFD4), held under the aegis of the United Nations, Finance Minister Nirmala Sitharaman called for urgent reforms in Multilateral Development Banks (MDBs) and a fairer global credit rating system.
Highlighting India’s proactive approach, Sitharaman stressed that MDB lending must be aligned with long-term development goals and guided by robust monitoring frameworks to ensure efficient utilisation of funds. She also underlined India’s support for international cooperation in modernising tax systems and tackling illicit financial flows.
“India’s comprehensive tax reforms and digital transformation in tax administration have significantly increased revenue and reduced compliance costs”, she noted. Emphasising the importance of balanced regulation, she added, “We believe that optimal regulation fosters both innovation and financial stability”.
The finance minister also pointed out the Indian financial system’s role in promoting inclusivity, especially for MSMEs, through easy credit access and low compliance burdens. India, she said, has built a dynamic start-up ecosystem and actively encourages public-private partnerships (PPPs) in infrastructure development.
Putting people at the heart of its development strategy, India has lifted 250 million people out of multidimensional poverty through targeted interventions and has empowered communities via inclusive Digital Public Infrastructure (DPI). However, Sitharaman stressed that national initiatives alone are not enough and called for a supportive international environment to sustain global growth.
India reiterated its commitment to South-South and Triangular Cooperation and urged developed nations to reverse the decline in Official Development Assistance (ODA). Sitharaman also advocated for increased climate finance that is predictable, accessible, and concessional especially for adaptation in vulnerable nations.
In a bilateral meeting on the sidelines of FFD4, Sitharaman met Nadia Calvino, President of the European Investment Bank (EIB) Group. They discussed the EIB’s expanding portfolio in India, which includes seven metro projects and one urban rail initiative. Both leaders explored opportunities for collaboration in digitalisation, water, sanitation, and potential partnerships in third countries, with Calvino expressing optimism about strengthening ties with India.
