NEW DELHI: India is poised to remain one of the fastest-growing economies globally over the coming years, finance minister Nirmala Sitharaman said on Friday, reaffirming the country’s commitment to inclusive, sustainable and innovation-led development across the Global South.
Speaking at the 10th annual meeting of the board of governors of the New Development Bank (NDB) in Rio de Janeiro, Brazil, the minister highlighted the Indian economy’s remarkable post-pandemic recovery, driven by macroeconomic stability, digital transformation, and inclusive policy design
“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,” she said.
Indian economy grew by 6.5% in FY25 and is estimated to achieve 6.5% growth in FY26 while the rest of the world is struggling amid global uncertainties.
NDB has shown that a Global South-led institution can deliver development solutions that are timely, trusted and context-specific, she said.
“India stands ready to collaborate with NDB in sharing successful models, such as our achievements in Digital Public Infrastructure (DPI), scaling up renewable energy adoption, for broader replication,” she said.
She said NDB has to chart a forward-looking strategy for the next decade of growth and building scale.
“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: Mobilizing private capital is key to sustaining growth given the limited fiscal space and competing demands for public capital expenditure,” she said.
NDB should play a catalytic role in unlocking private sector capital, she said.
Special focus must be placed on tailored support for Small and Medium Enterprises, especially women- led enterprises, to ensure inclusive participation, economic development and promote gender equity, the minister said.
Strengthening NDBs financial capacities to meet the scale and urgency of development financing needs is crucial, she said.
Actionable steps could be adopted from the Capital Adequacy Framework (CAF) for MDBs, and the Better, Bolder and Bigger MDB reforms brought out during India’s G20 Presidency in 2023, she said.
NDB has shown that a Global South-led institution can deliver development solutions that are timely, trusted, and context-specific. The Bank should foster cross-country partnerships to promote knowledge exchange, policy innovation, and technical cooperation. India stands ready to collaborate with NDB in sharing successful models, such as our achievements in digital public infrastructure, scaling up renewable energy adoption, for broader replication.
Source: The Financial Express
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