Key facts
- Developing nations should not disproportionately bear the consequences of global imbalances and conflicts.
- India faces spillover effects from global imbalances despite not originating them.
- Coordinated global action and stronger multilateral cooperation are needed for resilient economies and inclusive growth.
- Multilateral development banks need to be strengthened to provide greater financing to developing countries.
- India's economy is projected to grow at approximately 7% in the medium term, led by domestic demand.
Finance Minister Nirmala Sitharaman asserted that the Global South should not bear the disproportionate burden of global imbalances and conflicts, particularly those they do not drive. Speaking at the Global Convergence for Growth Summit, presided over by French President Emmanuel Macron, Sitharaman emphasized that India, like many developing economies, faces the spillover effects of these global issues.
She called for coordinated global action and strengthened multilateral cooperation to build resilient economies and ensure inclusive growth for all. The summit brought together leaders from advanced and emerging economies, including G7 nations, India, Brazil, China, Kenya, South Korea, and the International Monetary Fund, to discuss a balanced global framework.
Sitharaman noted that global imbalances vary and should focus on excessive and persistent ones, acknowledging differing domestic needs across countries. She highlighted India's strong medium-term growth projection of approximately 7%, driven primarily by domestic demand and a market-determined exchange rate.
Furthermore, Sitharaman advocated for the reform and strengthening of multilateral development banks to enhance their financing capacity, operational agility, and responsiveness to developing and emerging economies.