New Delhi: India Friday called for decisive collective action by the Global South to deal with multiple uncertainties arising out of fiscal constraints in several economies and evolving geopolitical dynamics.
"This meeting takes place at a defining moment for the Global South, as the world grapples with multiple uncertainties arising from fiscal constraints in several economies, climate transition issues and evolving geopolitical dynamics," finance minister Nirmala Sitharaman said in her opening statement at the 10th annual meeting of the board of governors of the New Development Bank (NDB) at Rio De Janeiro, Brazil.
"In response to these challenges, our collective action must be decisive, inclusive, and forward-looking," she added.
She pointed out that multilateral development banks had a distinctive comparative advantage in their ability to catalyse both public and private investments by offering a package of technical expertise, concessional financing, and effective risk mitigation tools thereby widening our policy options.
The NDB had emerged as a key partner-channelising development finance, supporting resilient infrastructure, and fostering meaningful cooperation across the Global South through a pragmatic and responsive approach, she said.
"India reaffirms its steadfast commitment to inclusive, sustainable, and innovation-led development of the global South," she said.
The minister noted that India's efforts led to the landmark inclusion of the African Union as a permanent member of the G20 to ensure that the global South plays a pivotal role in discussions about issues impacting them.
She added that over the past decade, NDB has emerged as a credible institution with its client focus, agile response, and financing several key infrastructure projects.
As the bank enters its next phase of growth, it must focus on strategic priorities, she said.
"Mobilising private capital is key to sustaining growth given the limited fiscal space and competing demands for public capital expenditure. NDB should play a catalytic role in unlocking private sector capital," she said.
Special focus must be on tailored support for small and medium enterprises, especially women-led enterprises, to ensure inclusive participation, economic development and promote gender equity, Sitharaman added.
Sitharaman also highlighted the importance of strengthening the NDB's financial capacity to meet the scale and urgency of development financing needs. She suggested adopting actionable steps from the Capital Adequacy Framework for Multilateral Development Banks and the better utilisation of MDBs' balance sheets report brought out during India's G20 presidency in 2023.
remarkable growth
The finance minister told the gathering that the Indian economy has demonstrated remarkable growth and resilience in the post-pandemic era. Strong focus on macroeconomic stability, targeted efforts to promote digitalisation, and inclusive policy design have been instrumental in achieving this, despite facing multiple domestic and external challenges.
"India is poised to remain one of the fastest growing economies globally in the coming years," Sitharaman said.
Sustainable finance
Speaking later in the day on the topic of financing sustainable development for the Global South, the finance minister said India is building a more resilient, inclusive, and innovation-driven financial architecture that aligns capital with climate and development goals.
"This meeting takes place at a defining moment for the Global South, as the world grapples with multiple uncertainties arising from fiscal constraints in several economies, climate transition issues and evolving geopolitical dynamics," finance minister Nirmala Sitharaman said in her opening statement at the 10th annual meeting of the board of governors of the New Development Bank (NDB) at Rio De Janeiro, Brazil.
"In response to these challenges, our collective action must be decisive, inclusive, and forward-looking," she added.
She pointed out that multilateral development banks had a distinctive comparative advantage in their ability to catalyse both public and private investments by offering a package of technical expertise, concessional financing, and effective risk mitigation tools thereby widening our policy options.
The NDB had emerged as a key partner-channelising development finance, supporting resilient infrastructure, and fostering meaningful cooperation across the Global South through a pragmatic and responsive approach, she said.
"India reaffirms its steadfast commitment to inclusive, sustainable, and innovation-led development of the global South," she said.
The minister noted that India's efforts led to the landmark inclusion of the African Union as a permanent member of the G20 to ensure that the global South plays a pivotal role in discussions about issues impacting them.
She added that over the past decade, NDB has emerged as a credible institution with its client focus, agile response, and financing several key infrastructure projects.
As the bank enters its next phase of growth, it must focus on strategic priorities, she said.
"Mobilising private capital is key to sustaining growth given the limited fiscal space and competing demands for public capital expenditure. NDB should play a catalytic role in unlocking private sector capital," she said.
Special focus must be on tailored support for small and medium enterprises, especially women-led enterprises, to ensure inclusive participation, economic development and promote gender equity, Sitharaman added.
Sitharaman also highlighted the importance of strengthening the NDB's financial capacity to meet the scale and urgency of development financing needs. She suggested adopting actionable steps from the Capital Adequacy Framework for Multilateral Development Banks and the better utilisation of MDBs' balance sheets report brought out during India's G20 presidency in 2023.
remarkable growth
The finance minister told the gathering that the Indian economy has demonstrated remarkable growth and resilience in the post-pandemic era. Strong focus on macroeconomic stability, targeted efforts to promote digitalisation, and inclusive policy design have been instrumental in achieving this, despite facing multiple domestic and external challenges.
"India is poised to remain one of the fastest growing economies globally in the coming years," Sitharaman said.
Sustainable finance
Speaking later in the day on the topic of financing sustainable development for the Global South, the finance minister said India is building a more resilient, inclusive, and innovation-driven financial architecture that aligns capital with climate and development goals.
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