Nirmala Sitharaman calls for global action against economic imbalances, urges fair burden sharing | Today’s news
Finance Minister Nirmala Sitharaman on Thursday called for coordinated global action to address economic uncertainty and ensure inclusive growth, while stressing that developing countries should not bear a disproportionate burden in correcting global imbalances.
Sitharaman was speaking at the virtual Global Convergence for Growth Summit chaired by French President Emmanuel Macron and attended by leaders of the G7 countries as well as India, Brazil, China, Kenya, South Korea and the International Monetary Fund (IMF).
As India’s representative, she emphasized the need for stronger multilateral cooperation amid deepening global challenges.
“In today’s interconnected world, prosperity and challenges are shared, but the consequences of conflict and insecurity fall disproportionately on developing countries and the global South. The situation calls for coordinated global action. We must strengthen multilateral cooperation to build resilient economies, accelerate sustainable development and ensure inclusive growth that benefits all,” she said.
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Regarding global imbalances, the finance minister cautioned against a one-size-fits-all approach, noting that they arise from a variety of structural factors. “Not all imbalances are the same, some reflect differences in demographics, stages of development, resource endowment or economic structures. Our focus should therefore remain on excessive and persistent imbalances while recognizing that the scale of household needs varies significantly across countries,” she said.
On behalf of the Global South, Sitharaman said that countries that are not responsible for creating global imbalances often bear the consequences.
“The burden of adjustment should not fall disproportionately on countries that are not drivers of these imbalances. India, like many developing economies, remains largely peripheral to the emergence and spread of global imbalances; yet we continue to face their spillovers,” she said.
She highlighted India’s economic performance, saying growth continued to be driven primarily by domestic demand and supported by market mechanisms.
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“Our growth is primarily driven by domestic demand, with the exchange rate largely market-driven. India continues to be among the world’s fastest-growing major economies, with GDP growth expected to remain strong at around 7% over the medium term,” she said.
The finance minister also emphasized the need to strengthen confidence in multilateral institutions and make them more responsive to developing economies. She called for “better, bigger, more efficient and representative” multilateral development banks (MDBs) that would be able to provide significantly higher financing to emerging and developing countries.
According to Sitharaman, strengthening the financial capacity, operational agility and responsiveness of MDBs would be essential to support the SDGs.
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She further emphasized the importance of resilient and geographically diversified supply chains, especially for critical minerals. A greater focus on circulation, recycling and urban mining, she noted, could help ease global pressures on resources.
Concluding her remarks, Sitharaman reiterated India’s commitment to working with international partners to build a more resilient, inclusive and prosperous global economy and to advance collective solutions for shared growth.
