India calls for coordinated global action to address economic fallout of conflicts
New Delhi, June 12: Amidst the international energy crisis, India has called for coordinated global action to address the economic fallout of conflicts and uncertainty, while noting that developing nations and countries in the Global South continue to bear a disproportionate share of the impact.
“In today’s interconnected world, prosperity and challenges are shared, but the consequences of conflicts and uncertainty fall disproportionately on developing countries and the Global South,” said Finance Minister Nirmala Sitharaman at the Global Convergence for Growth Summit.
She said stronger multilateral cooperation was essential to build resilient economies, accelerate sustainable development and promote inclusive growth.
The summit, chaired by French President Emmanuel Macron, was marked by the presence of leaders from G7 nations and major emerging economies, including India, Brazil, China, Kenya and South Korea, along with representatives of the International Monetary Fund (IMF).
Sitharaman said recent global developments had underscored the need for resilient, diversified and geographically distributed supply chains, particularly for critical minerals.
She added that greater focus on circularity, recycling and urban mining could help address global sourcing challenges.
On global economic imbalances, the finance minister said such disparities often reflect differences in demographics, development levels, resource endowments and economic structures.
However, she stressed that efforts to address excessive and persistent imbalances should not place an undue burden on countries that are not responsible for them.
“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 said.
The finance minister also called for reforms in multilateral institutions, urging greater responsiveness to the needs of developing countries.
She advocated for stronger and more representative Multilateral Development Banks (MDBs), saying enhanced financing capacity and operational agility would be crucial to meeting the development requirements of emerging economies. (BVI)
