Finance Minister Nirmala Sitharaman recently attended the G7 meeting of finance ministers and central bank governors in Japan, where she emphasized the need to strengthen multilateral development banks (MDBs) such as the World Bank and the Asian Development Bank to effectively tackle trans-boundary challenges. In a session on “Strengthening International Cooperation for Sustainable & Inclusive Growth,” she commended the collaboration between the G20 India and Japan G7 Presidencies, highlighting their efforts to facilitate complementarity and positive outcomes during challenging times.
Sitharaman stressed the significance of going beyond GDP numbers and focusing on empowering people through enhanced digital connectivity in developing nations. She addressed the G7 seminar on economic policies for welfare, emphasizing that technology plays a crucial role in providing the poor with access to markets and basic services. The finance minister underscored the transformative power of digital connectivity in empowering individuals and suggested exploring new ways to measure empowerment beyond GDP indicators.
One of the key dilemmas faced by Emerging Markets and Developing Economies (EMDEs) is finding a balance between climate security and economic growth amidst overlapping crises and socio-economic transformations. Sitharaman highlighted the importance of sustainable growth and environmental considerations, emphasizing the need to strike a balance between the two in the short and long run.
During the sessions, Sitharaman also showcased India’s focus on technology, digital public infrastructure (DPI), and green hydrogen as foundations for sustainable and inclusive growth. These initiatives were presented as innovative policy toolkits by EMDEs, showcasing their commitment to addressing pressing global challenges.
Furthermore, the finance minister highlighted the resilience of EMDEs and their unique development challenges. She emphasized India’s strong recovery as a bright spot in the global growth outlook. Sitharaman also emphasized the urgency of improving the efficiency of the G20 Common Framework and strengthening trust and cooperation among stakeholders to ensure timely debt treatment for vulnerable nations.
On the sidelines of the G7 meeting, Sitharaman met with Gita Gopinath, the first Deputy Managing Director, to discuss key economic issues. This meeting further emphasized India’s commitment to engaging with international partners and experts to address global economic challenges.
In conclusion, Finance Minister Nirmala Sitharaman’s participation in the G7 meeting highlighted the need for strengthening MDBs and international cooperation to tackle trans-boundary challenges. Her emphasis on sustainable and inclusive growth, technological advancements, and the empowerment of individuals underscored India’s commitment to addressing global issues and contributing to the welfare of its citizens and the international community.