India's Role in Financing Sustainable Development Highlighted by Finance Minister

India's Unique Position in Global Development

Rio de Janeiro, July 5: Finance Minister Nirmala Sitharaman emphasized India's significant role as both a prominent emerging economy and a global influencer, stating that the nation is well-equipped to lead transformative efforts not only for itself but also for others with similar aspirations.

During her address at the prominent ‘Governors Seminar’ focused on 'Challenges for Financing Sustainable Development for the Global South', she articulated that securing funding for sustainable development transcends mere financial contributions; it involves fostering fairness, trust, and effective leadership.

“For India, it is crucial to expedite development to provide housing, healthcare, education, and job opportunities for millions. Concurrently, we face escalating climate-related challenges such as heatwaves, water scarcity, and severe weather events,” she remarked to the audience.

India is actively working to address these issues through initiatives like the National Electric Mobility Mission and regional climate action strategies.

“The true challenge lies not in choosing between development and sustainability, but in crafting policies—especially in collaboration with Emerging Markets and Developing Countries (EMDEs)—that foster inclusive growth and enhance sustainable development,” the Finance Minister noted.

She pointed out that as we pursue the 2030 agenda, the financing deficit for Sustainable Development Goals (SDGs) in developing nations has surged to over $4.2 trillion annually since the pandemic, highlighting the growing disparity between aspirations and actual progress.

“India finds itself at a pivotal juncture where the dreams of a billion individuals align with the urgent needs of a rapidly evolving planet. In this critical moment, policy decisions will dictate our progress. India has shown that scale and speed can coexist effectively,” she added.

Through groundbreaking policy measures such as UPI, Aadhaar, and Jan Dhan, the nation has successfully promoted financial inclusion down to the last mile.

“Our policy framework has been bolstered by initiatives like the Gati Shakti National Master Plan, the National Green Hydrogen Mission, and the establishment of over 220 GW of renewable energy capacity to facilitate a clean energy transition. These initiatives are further supported by a commitment to maintaining macroeconomic stability,” the Finance Minister underscored.

In recent years, India has established a robust foundation for green finance through measures like sovereign green bonds, ESG disclosure requirements, and a proposed taxonomy for climate finance.

She concluded by stating that India is developing a more resilient, inclusive, and innovation-driven financial system that aligns capital with climate and developmental objectives.