Union Finance Minister Nirmala Sitharaman has called for stronger multilateral cooperation to build resilient economies, accelerate sustainable development and ensure inclusive growth. Addressing the Global Convergence for Growth Summit virtually in New Delhi today, the Minister said that while prosperity and challenges are shared in an interconnected world, the consequences of conflicts and uncertainty fall disproportionately on developing countries and the Global South. She stressed that coordinated global action is essential to address these challenges. Emphasising the issue of global imbalances, Ms Sitharaman said that not all imbalances are alike, as some reflect differences in demographics, development stages, resource endowments and economic structures. She noted that focus should remain on excessive and persistent imbalances while recognising that the scale of domestic needs varies significantly across countries.
The Finance Minister asserted that India and many developing economies remain largely peripheral to the origination and propagation of global imbalances. Highlighting India’s economic progress, the Finance Minister said that the country’s growth is primarily driven by domestic demand, supported by a largely market-determined exchange rate. She added that India continues to be among the world’s fastest-growing major economies, with GDP growth projected to remain robust at around seven per cent over the medium term. The summit, chaired by French President Emmanuel Macron, brought together leaders of advanced and emerging economies, including the G7 nations such as India, Brazil, China, Kenya, South Korea and the International Monetary Fund.
