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Informist, Friday, Jun. 12, 2026

NEW DELHI – The burden of adjustments of global imbalances should not fall disproportionately on countries that are not the drivers of the same, Finance Minister Nirmala Sitharaman said Thursday while speaking at the virtual meeting on Global Convergence for Growth Summit. "India, like many developing economies, remains largely peripheral to both the origination and propagation of global imbalances; yet, we continue to face their spillover effects," she added. 

French President Emmanuel Macron presided over the Global Convergence for Growth Summit that witnessed participation of all the G7 nations, India, Brazil, China, Kenya, South Korea and International Monetary Fund.

Sithraman called for coordinated global action against consequences of conflicts and uncertainty that fall disproportionately on developing countries and the Global South. "We must strengthen multilateral cooperation to build resilient economies, accelerate sustainable development, and ensure inclusive growth that benefits all," she added. 

Her comments come at a time when the world is grappling with the repercussions of the war between the US and Iran, which has been going on for over three months. The war has resulted in a surge in energy prices and strong capital outflow from developing economies, including India. 

"Not all imbalances are alike, some reflect differences in demographics, development stages, resource endowments, or economic structures. Our focus should, therefore, remain on excessive and persistent imbalances while recognising that the scale of domestic needs varies significantly across countries," Sitharaman said. 

She highlighted that India's growth is primarily led by domestic-demand, with a largely market-determined exchange rate. India continues to be among the world's fastest-growing major economies, with GDP growth projected to remain robust at around 7% over the medium term, she added.

The finance minister further emphasised the need to strengthen confidence in multilateral institutions and ensure that they remain responsive to the needs of developing countries. She called for better, bigger, more effective and more representative multilateral development banks that can deliver significantly greater financing to developing countries and emerging economies, noting that enhancing their financing capacity, operational agility and responsiveness will be critical.

Sitharaman said that the recent developments have highlighted the importance of resilient, diversified and geographically distributed supply chains, particularly for critical minerals, and focus on circularity, recycling and urban mining can address some of the sourcing challenges being collectively faced by the world. "India remains committed to working with all partners to build a more resilient, inclusive and prosperous global economy, and to advance shared solutions for shared growth." she said. End

Reported by Pratiksha

Edited by Akul Nishant Akhoury

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