Finance Minister Nirmala Sitharaman said that India’s development model serves as a blueprint for how emerging economies can pursue growth at scale without compromising on sustainability.
Speaking at the ‘Governors Seminar’ on “Challenges for Financing Sustainable Development for the Global South” during her official visit to Rio de Janeiro, she highlighted the critical balance between economic progress and environmental responsibility.
"For India, accelerating development is essential to ensure access to housing, healthcare, education and livelihoods for millions," Sitharaman said, noting that the country also faces increasing climate-related risks such as heatwaves, water scarcity, and extreme weather events.
She pointed out that India’s strategic role as both a fast-growing economy and a global voice enables it to lead the transformation not just for its own population but for other nations with similar goals.
Financing sustainable development, particularly in the Global South, is more than just mobilising capital, she said. It also involves fostering fairness, trust, and leadership in global economic systems.
Sitharaman stressed that rather than choosing between sustainability and development, the real challenge lies in crafting policies - especially in collaboration with Emerging Markets and Developing Economies (EMDEs) - that ensure inclusive and sustainable progress.
As per her remarks, the global gap in financing Sustainable Development Goals (SDGs) has widened significantly, with developing nations facing a shortfall of over $4.2 trillion annually post-pandemic.
"India stands at a unique crossroads. The aspirations of a billion people converge with the imperatives of a fast-changing planet. And in this moment, policy will determine pace. India has demonstrated how scale and speed can go hand-in-hand," she asserted.
The Finance Minister cited successful initiatives such as UPI, Aadhaar, and Jan Dhan, which have helped bring financial inclusion to even the most remote corners of the country. She also referenced large-scale programs like the Gati Shakti National Master Plan and the National Green Hydrogen Mission, alongside the installation of over 220 GW of renewable energy capacity.
India’s commitment to clean energy and macroeconomic stability is supported by green finance tools like sovereign green bonds, ESG disclosure requirements, and a proposed taxonomy for climate-aligned finance.
“India is building a more resilient, inclusive, and innovation-driven financial architecture that aligns capital with climate and development goals,” Sitharaman concluded.