The new Delhi, 4 July (PTI) of the Minister of Finance Nirmala Sitharaman, on Friday, emphasized the need for a decisive collective action of the global south to deal with several uncertainties resulting from fiscal restrictions in several economies and developing geopolitical dynamics.
She spoke at the annual meeting of the Governors of the Board of Directors of the New Development Bank (NDB) in Rio de Janeiro in Brazil on “Ride Development: Support for Innovation, Cooperation and Impact Through the multilateral development bank for global south”.
Sitharaman said that the meeting is taking place at a determining moment for global south because the world is struggling with several uncertainties resulting from fiscal restrictions in several economies, problems with the transition to climate and developing geopolitical dynamics.
“In response to these challenges, our collective measures must be decisive, inclusive and prospective,” she said.
The new development bank (NDB) was founded by BRICS nations.
She noted that MDB plays a key role in completing our efforts to solve these uncertainties.
“MDB has a significant comparative advantage in their ability to catalyze public and private investments by offering a package of technical knowledge, concession financing and effective risk mitigation tool, extending our political possibilities,” she said.
In this context, Sitharaman added that NDB became a key partner – a channel of development financing, support for durable infrastructure and promoting meaningful cooperation in the global south through a pragmatic and readiness approach.
“India reaffirms its perennial obligation of the inclusive, sustainable and innovative development of the global south,” she said.
Sithaman said that India’s efforts have led to the Milestone of the Inclusion of the African Union as a permanent G20 member to ensure that global south plays a key role in discussions on issues that affect them.
She said the Assembly that the Indian economy has shown remarkable growth and resistance in the postpandemic era.
A strong focus on macroeconomic stability, targeted efforts to promote digitization and inclusive policy design was helpful in achieving this reason, although it faced multiple domestic and external challenges.
“India is ready to remain one of the fastest growing economies around the world in the coming years,” she said.
In the last decade, it has also stated that NDB has become a client as a trusted institution, an agile reaction and financing several key infrastructure projects.
When the bank enters the next phase of growth, it must focus on strategic priorities, she said.
“Mobilization of private capital is the key to maintaining growth due to the limited fiscal space and competitive requirements for public capital expenditure. NDB should play a catalytic role in unlocking the capital of the private sector,” she said.
Particular attention must be aimed at supporting adapted for small and medium -sized enterprises, especially women -led businesses to ensure inclusive participation, economic development and support for women and men’s equality, Sithaman added.
She said NDB has shown that a global South Podnik institution can provide a solution to development that are timely, trusted and context -specific.
The bank should support partnerships across countries to promote knowledge exchange, policy innovation and technical cooperation, Sitharaman said.
“India is ready to cooperate with NDB to share successful models such as our achievements in digital public infrastructure, expanding the acceptance of renewable energy for wider replication,” she said, adding that the robust management and transparent institutional mechanisms are essential to increase NDB credibility and efficiency.
(Tagstotranslate) Global South (T) NDB
