Sitharaman flags concerns on inadequacy of multilateral institutions, global terrorism and food security at conclave

"Interventions by these organisations, other than multilateral development banks,  are currently less effective than ideal, especially since they were first instituted. This decline in effectiveness is reshaping strategic blocks across the world, impacting supply chains, and has far-reaching consequences," she said while adding the world has not yet recovered from COVID.

India doesn't have answers yet on the transition energy, she said, adding that the path from fossil to renewable is complicated. "Till today no one is able to tell us which is that one energy which can be used for transition. Low-income, developing countries cannot afford big money for energy transition," she said.

The government is constrained by limited financial resources, she said, and natural gas is no longer considered a viable solution for the energy transition. This underscores the need for innovative and cost-effective solutions.

India is working on establishing a template to maintain food security, she said. "There should be a regional balance for basic staples for sufficiency and security," she said.

This effort goes beyond India's borders, as the Finance Minister highlighted the importance of regional balance for basic staples to ensure food sufficiency and security, particularly in the context of global uncertainties.

Cryptocurrency is not something where any one country can succeed, the finance minister noted in her remarks. She added that the matter was taken up with the recently concluded G20 group for consensus on whether crypto should be regulated and if so, how. The G20 is now coming out with a template for the crypto world, she added.

The FM said the Indian government is actively working on reducing debt levels, taking inspiration from how other economies manage their debts.

"The government is conscious of the debt burden. Our efforts are very well streamlined and I am sure we will be able to bring it down. Need to be sure that the money spent is well used. Bang for the buck is well in our minds," she said.

Sitharaman also touched upon the pressing concern of global terrorism, acknowledging that it has become a "permanent uncertainty" with a high-cost risk associated with it. This serves as a primary risk for businesses worldwide and economic policies alone are insufficient to address it. Companies need to factor in the impact of terrorism on their operations and strategies, she said.

Winding up her remarks, Sitharaman pointed out that the government is conscious of macroeconomic stability and fiscal management in its decision-making. This comes at a time when India is gearing up for the 2024 Lok Sabha elections and the Budget announcement in February.