Union Finance and Corporate Affairs Minister Nirmala Sitharaman highlighted India's strides in tax reforms, digital transformation, and inclusive growth at the Third Plenary Meeting of the Fourth International Conference on Financing for Development (FFD4) in Seville, Spain.
Addressing global delegates, Sitharaman stated that India's comprehensive tax reforms and the adoption of digital public infrastructure in tax administration have not only increased revenue but also significantly reduced compliance costs, especially benefiting Micro, Small, and Medium Enterprises (MSMEs).
"We support international cooperation to modernise tax systems and curb illicit financial flows. India's reforms have yielded measurable outcomes-greater revenue and lower compliance burdens," she asserted.
Fostering Innovation Through Inclusive Financial Systems
Highlighting India's approach to inclusive development, the Finance Minister emphasized the country's efforts to build a dynamic start-up ecosystem, promote Public-Private Partnerships (PPPs) in infrastructure, and ensure that the financial system remains accessible to small businesses and communities.
"Optimal regulation fosters innovation and stability," she said, adding that India's digital and regulatory reforms have created a fertile environment for MSME growth, easier access to credit, and lower cost of doing business.
Global Reforms and South-South Cooperation
Sitharaman called for comprehensive reforms to the international financial architecture, including changes in Multilateral Development Banks (MDBs) and credit rating systems to improve fairness and inclusivity. She urged MDBs to align their lending practices with long-term development goals, supported by robust monitoring frameworks to ensure accountability.
Reiterating India's global development stance, Sitharaman said:
"We remain committed to South-South and Triangular Cooperation. Developed countries must enhance predictable, concessional climate finance-especially for adaptation efforts in vulnerable nations."
People-Centric Development and Poverty Reduction
Citing India's inclusive approach, the Finance Minister noted that targeted policy actions have helped lift 250 million people out of multidimensional poverty, while Digital Public Infrastructure (DPI) has empowered communities and delivered services equitably.
"India has consistently placed people at the centre of its development strategy," she said.
Urging United Global Action on SDGs
With global challenges threatening the realization of Sustainable Development Goals (SDGs), Sitharaman highlighted the urgent need for transformative international action. She flagged a $4 trillion annual financing gap in developing nations and called for collective responsibility.
"In the spirit of Vasudhaiva Kutumbakam-'The world is one family'-we must unite to drive meaningful, inclusive change," she concluded.
The address comes a decade after the adoption of the Addis Ababa Action Agenda, marking a critical moment to reassess and recalibrate global financing strategies for development.
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