Finance Minister Nirmala Sitharaman stated that India remains one of the fastest-growing major economies globally, with a projected GDP growth of around 7% in the medium term. She attributed this growth to India’s domestic-demand-driven economy and a market-determined exchange rate. Sitharaman emphasized the importance of global cooperation to build resilient economies and achieve inclusive growth that benefits all, especially in the face of shared challenges and conflicts.
Highlighting India’s economic progress under Prime Minister Narendra Modi’s leadership, Sitharaman participated in the ‘Global Convergence for Growth Summit’ virtually from New Delhi. The summit, presided over by French President Emmanuel Macron, aimed to foster balanced growth within a global framework, with leaders from various advanced and emerging economies, including G7 nations, India, Brazil, China, Kenya, South Korea, and the IMF, in attendance.
Addressing the issue of global imbalances, Sitharaman stressed the need to focus on excessive and persistent imbalances while acknowledging the diverse needs of different countries due to demographics, development stages, and economic structures. She advocated for equitable burden-sharing, particularly for countries like India that are not the primary contributors to these imbalances but still experience their repercussions.
Sitharaman called for strengthening confidence in multilateral institutions to better serve the needs of developing countries. She emphasized the importance of enhancing the capacity, agility, and responsiveness of Multilateral Development Banks to provide increased financing to developing and emerging economies. Additionally, she highlighted the significance of resilient and diversified supply chains, especially for critical minerals, and suggested a focus on circularity, recycling, and urban mining to address sourcing challenges on a global scale.
