Union Finance Minister Nirmala Sitharaman on Thursday called for stronger multilateral cooperation and more representative global financial institutions as she participated virtually in the Global Convergence for Growth Summit chaired by French President Emmanuel Macron.

The summit brought together leaders from advanced and emerging economies to discuss ways of promoting balanced global growth within an efficient international framework. Besides the G7 nations, leaders from India, Brazil, China, Kenya, South Korea and the International Monetary Fund participated in the meeting.

Representing India, Sitharaman stressed that while prosperity and challenges are increasingly shared in an interconnected world, the impact of conflicts and global uncertainty falls disproportionately on developing nations and the Global South.

She said the prevailing situation required coordinated international action aimed at strengthening multilateral cooperation, building resilient economies and ensuring sustainable and inclusive growth.

Global South Must Not Bear Disproportionate Burden

Addressing concerns over global economic imbalances, the Finance Minister said not all imbalances should be viewed similarly, as some arise from differences in demographics, stages of development, resource availability and economic structures.

According to Sitharaman, the international community should focus on excessive and persistent imbalances while recognising that domestic priorities vary significantly across countries.

Speaking on behalf of the Global South, she said the burden of adjustment should not fall unfairly on countries that are not responsible for creating these imbalances. She noted that India, like many developing economies, remains largely on the periphery of both the origin and transmission of global imbalances, yet continues to experience their adverse spillover effects.

Highlighting India’s economic trajectory under PM Modi’s leadership and the government’s emphasis on the mantra of Reform, Perform and Transform, Sitharaman said the country’s growth continues to be driven primarily by domestic demand.

She added that India’s exchange rate remains largely market-determined and noted that the country is expected to remain among the world’s fastest-growing major economies, with GDP growth projected to stay around seven per cent over the medium term.

Push For Stronger Multilateral Institutions

The Union Finance Minister emphasised the importance of restoring confidence in multilateral institutions and ensuring that they remain responsive to the requirements of developing countries.

She called for larger, more effective and more representative Multilateral Development Banks capable of providing significantly higher levels of financing to emerging economies and developing nations. Strengthening their financing capacity, operational flexibility and responsiveness, she said, would be crucial in addressing future challenges.

Sitharaman also highlighted the need for resilient and geographically diversified supply chains, particularly in the area of critical minerals.

Focus On Critical Minerals And Shared Growth

The Finance Minister said recent global developments have underlined the importance of reducing vulnerabilities in supply chains. She noted that greater emphasis on circularity, recycling and urban mining could help address sourcing challenges faced by countries across the world.

Concluding her remarks, Sitharaman reaffirmed India’s commitment to working with international partners to build a more resilient, inclusive and prosperous global economy.

She said India remains dedicated to advancing collective solutions for shared growth and strengthening cooperation to ensure long-term economic stability and sustainable development.

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