India Backs Global Financial Reforms To Enhance Equity & Inclusivity: FM Sitharaman

Finance Minister Nirmala Sitharaman emphasised India’s strong support for reforms to the global financial system to enhance fairness, equity, and long-term sustainability at the 4th International Conference on Financing for Development (FFD4), held in Seville, Spain.

Speaking during the third plenary session of the UN-organised conference, Sitharaman said that reshaping the international financial architecture—particularly reforming Multilateral Development Banks (MDBs) and addressing biased credit rating practices—is essential for inclusive growth.

The Finance Minister emphasised that MDBs must align their lending with sustainable development goals and implement transparent monitoring frameworks.

These mechanisms, she said, are necessary to ensure effective fund utilisation and lasting impact.

She also advocated for modernising global tax systems to fight illicit financial flows.

Highlighting India’s domestic achievements, Sitharaman pointed to comprehensive tax reforms and digital transformation that have improved revenue generation while reducing compliance burdens.

Focus on inclusive growth

FM Sitharaman stressed that India’s financial strategy is centred around inclusivity.

“We have made credit more accessible and reduced compliance costs, especially for micro, small and medium enterprises (MSMEs),” she noted.

Additionally, she pointed to India’s thriving start-up ecosystem and successful use of public-private partnerships (PPPs) in infrastructure as models of sustainable development.

Through targeted policy measures and digital public infrastructure, India has lifted over 250 million people out of multidimensional poverty.

However, Sitharaman emphasised that the international community must reinforce national efforts with a supportive global environment to achieve shared prosperity.

Reiterating India’s commitment to South-South and Triangular Cooperation, she called on developed nations to reverse the decline in Official Development Assistance (ODA).

She also pressed for more predictable and concessional climate finance, particularly for vulnerable nations facing adaptation challenges.

Sitharaman invoked the Indian philosophy of Vasudhaiva Kutumbakam—The World is One Family—and urged the international community to unite in fostering development that benefits all.

Engagement with the European Investment Bank

On the sidelines of the conference, the Finance Minister met with Nadia Calviño, President of the European Investment Bank (EIB) Group.

Discussions covered the EIB’s expanding operations in India, including its support for seven metro and one urban rail project.

The leaders explored opportunities to diversify EIB’s engagement in India into other key sectors like water and sanitation.

They also discussed partnering in third countries, particularly in the realm of digital infrastructure, leveraging India’s global leadership in digitalisation.

Calviño expressed her commitment to strengthening the EIB–India partnership in the years ahead.

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