Finance Minister Nirmala Sitharaman Urges Global Unity On Debt, Climate Change, Food Security Issues

Unsustainable debt, climate change, food security concerns, and inflationary issues due to supply chain disruptions are some of the most important challenges that need to be addressed in the coming decade, said Union Finance Minister Nirmala Sitharaman while speaking at the Confederation of Indian Industries’ Global Economic Policies Forum in New Delhi on Wednesday.

The policy forum is a two-day event, scheduled for 11th-12th December, where a host of speakers will be engaging in discussions on contemporary global and Indian economic policy issues.

The union finance minister stated that it is now critical for the industry, policymakers, citizens, and citizen forums to collaborate in a coordinated manner to ensure a better livelihood for citizens in the global south.

She noted that the world can no longer continue to stay divided into comfortable zones of globally advanced nations and the nations that are not advanced. All stakeholders will have to work on the larger goals of the economy, Sitharaman said.

Efforts should be made to restore normalcy everywhere. “Wars should be avoided; disruptions should be avoided,” she remarked while highlighting the trouble caused by such disruptions to the world order and supply chains and the subsequent inflationary impact.

Inflation does not respect borders, and it is a major challenge globally, she said.

Asking the industry to “realign and reset” itself based on the lessons learnt in the last decade, Sitharaman said the supply chains should be widespread lest geopolitical risks disrupt it. “Economic and commercial considerations today will have to blend the economy and its priorities with politics and strategic needs.”

On climate change, Sitharaman stated that this is something that needs to be looked at from various angles, and all of us need to commit ourselves like we have committed to removing poverty. “We must make sure that people don’t lose their hard-earned wealth and lives on climate vagaries.”

She stated that we could leverage technology and innovation to address the issue of food scarcity and ensure a better livelihood for farmers. We should look at different angles of improving agriculture without putting too much pressure on resources. The challenge of water scarcity should be another item in the list of the coming decade's priorities, Sitharaman remarked.

Agri Stack is a digital ecosystem that aims to make it easier for farmers to get easier access to cheaper credit, higher-quality farm inputs, localised and specific advice, and more informed and convenient access to markets.

Highlighting the importance of scaling small and medium industries in tandem with large industries, she said that India will reap its true demographic dividend when industries are spread out across the nation.

The union minister also pointed out that intergenerational debt is mounting in countries and remarked that responsible governments cannot run on borrowings so large that further generations cannot pay them back.

Stating that the Indian government is super-conscious about the fact that future generations cannot be burdened with unsustainable debt, Sitharaman said that stakeholders must work together to see how debt can be managed at the national and the sub-national level.