NDB's mandate needs renewal with focus on agility, efficiency: FM Sitharaman

The FM highlighted India’s unique position as both a major emerging economy and an international influencer.

Finance Minister Nirmala Sitharaman on Friday called for a renewed mandate for the New Development Bank (NDB), urging it to adapt to a fast-changing global landscape with greater agility, technological advancement, and efficiency.

Addressing the NDB Governors’ Seminar on ‘Challenges for Financing Sustainable Development for the Global South’ in Rio de Janeiro, she said the bank must play a bigger role in shaping a more equitable and responsive global financial architecture.

Sitharaman noted that the NDB had already approved over 100 projects and provided more than $35 billion in financing across member countries. This includes key Indian projects in metro rail, renewable energy, and water management. She stressed that the bank should evolve from merely being a capital source to becoming a platform that promotes fairness, trust, and leadership in global finance.

She highlighted India’s unique position as both a major emerging economy and an international influencer. “India is well-placed to lead this transformation not just for itself, but for all countries that share its aspirations,” she said.

The minister also underscored the urgent need for decisive collective action from the Global South to address uncertainties stemming from fiscal constraints, climate change, and geopolitical disruptions. These issues, she said, continue to deter long-term investments and delay critical progress in areas such as climate-resilient infrastructure and clean energy.

Sitharaman cited India’s success in combining scale and speed through transformative digital and policy initiatives, including UPI, Aadhaar, Jan Dhan, the Gati Shakti National Master Plan, and the National Green Hydrogen Mission. She said India’s installation of over 220 GW of renewable energy capacity exemplifies its commitment to sustainability. These efforts, she added, are backed by a stable macroeconomic environment.

Raising concerns about the growing financial gap in meeting Sustainable Development Goals (SDGs), she said that post-pandemic estimates show a $4.2 trillion annual shortfall for developing countries. This, she warned, reflects the widening gap between ambition and reality on the path to achieving the 2030 Agenda.

Despite these hurdles, Sitharaman expressed confidence that India will remain one of the fastest-growing major economies, citing the country’s strong post-pandemic recovery and economic resilience.