Nirmala Sitharaman calls for global action on economic imbalance, urges fair burden-sharing

Published 11 June 2026 · finance

Finance minister Nirmala Sitharaman on Thursday called for coordinated global action to address economic uncertainty and secure inclusive growth, while stressing that developing countries should

Finance minister Nirmala Sitharaman on Thursday called for coordinated global action to address economic uncertainty and secure inclusive growth, while stressing that developing countries should not bear a disproportionate burden in correcting global imbalances. Sitharaman was speaking at the virtual Global Convergence for Growth Summit, chaired by French President Emmanuel Macron and attended by leaders of G7 nations as well as India, Brazil, China, Kenya, South Korea and the International Monetary Fund (IMF). Representing India, she underscored the need for stronger multilateral cooperation amid deepening global challenges. “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. The situation demands coordinated global action.

We must strengthen multilateral cooperation to build resilient economies, accelerate sustainable development, and ensure inclusive growth that benefits all,” she said. Also Read | FM Sitharaman to review PSB performance amid loan stress, West Asia war risks On global imbalances, the finance minister cautioned against a one-size-fits-all approach, noting that they arise from diverse structural factors. “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 recognizing that the scale of domestic needs varies significantly across countries,” she said. Speaking on behalf of the Global South, Sitharaman said countries not responsible for creating global imbalances often bear their consequences.

“The burden of adjustment should not fall disproportionately on countries that are not the drivers of these imbalances. 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. Highlighting India’s economic performance, she said growth continues to be driven primarily by domestic demand and supported by market-based mechanisms. Also Read | Govt open to views on capital gains tax cuts amid FPI outflows: Sitharaman “Our growth is primarily domestic-demand led, 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 said.