Union Finance and Corporate Affairs Minister Nirmala Sitharaman on Tuesday highlighted the success of India’s tax reforms and digital transformation initiatives, stating that they have led to increased revenue collection and reduced compliance costs.
Speaking at the Third Plenary Meeting of the Fourth International Conference on Financing for Development (#FFD4) in Seville, Spain, the Finance Minister affirmed India’s commitment to international cooperation in modernising tax systems and combating illicit financial flows.
“Our comprehensive tax reforms and digital overhaul in tax administration have boosted revenue and brought down compliance burdens,” Sitharaman said, adding that India believes optimal regulation fosters both innovation and financial stability.
She emphasised that India’s financial ecosystem promotes inclusivity through easier credit access and reduced compliance, particularly benefiting MSMEs. The Minister also underscored the country’s support for Public-Private Partnerships (PPPs) and start-up growth in infrastructure.
Calling for reforms in the international financial architecture, Sitharaman advocated for changes in Multilateral Development Banks (MDBs) and credit rating mechanisms to ensure greater equity and inclusivity. She stressed the need for MDB lending to be aligned with long-term development goals and closely monitored for effective implementation.
Highlighting India’s people-centric development approach, she said, “Targeted policies have lifted 250 million people out of multidimensional poverty and empowered communities through inclusive Digital Public Infrastructure.”
However, Sitharaman noted that national progress must be supported by an enabling global environment. She reaffirmed India’s commitment to South-South and Triangular Cooperation and urged developed countries to reverse the decline in Official Development Assistance (ODA) and enhance climate finance, especially for adaptation needs in vulnerable nations.
Invoking India’s ancient ethos of ‘Vasudhaiva Kutumbakam’—the world is one family—she called for united global efforts to drive impactful change.
Reflecting on the decade since the adoption of the Addis Ababa Action Agenda, Sitharaman stressed that with many Sustainable Development Goals (SDGs) lagging and a financing gap of over USD 4 trillion annually for developing countries, urgent and transformative action is essential.
