Union Finance Minister Nirmala Sitharaman has called for greater certainty in global trade, with respect for national development priorities, while avoiding unnecessary restrictions that could lead to market fragmentation.
Speaking at Kautilya Economic Conclave on Saturday, October 3, Sitharaman said, "International Trade policy should provide greater certainty for businesses, respect national development priorities, and avoid unnecessary restrictions that fragment markets."
She also urged for open, predictable, and rules-based global economic relationships. "Nations should engage with one another through dialogue and negotiated agreements, rather than allowing geopolitical differences to become barriers to trade and investment," she said.
The Finance Minister's remarks come as global supplies continue to face disruptions, primarily energy and shipping routes towards the Strait of Hormuz amid heightened geopolitical tensions between US and Iran.
Reflecting on these disruptions, she said, "The Hormuz disruption tested the systems supporting essential energy supplies."
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According to Sitharaman, a more resilient global economy will require countries to diversify partnerships, keep markets open, honour commitments, and work together to keep the movement of goods, services, energy and capital as stable and predictable as possible.
Reflecting on the current economic situation, Sitharaman said, "Uncertainty is now a standing condition of the global economy, and policy must be designed around it." She added, "We need to keep building resilience as we go along; it is not a one-time exercise."
Further, the global financial architecture must reflect the economies where growth now lies, she said. Sitharaman emphasised that the work on strengthening multilateral development banks, taken forward under India's G20 Presidency, should translate into larger, faster and more predictable longterm finance for developing economies.
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