India’s Tax Reforms and Digital Drive Boost Revenue, Says FM Nirmala Sitharaman

Union Finance and Corporate Minister Nirmala Sitharaman said on Tuesday that India’s tax reforms and use of technology in tax systems have helped raise revenue and lower compliance costs. Speaking at the Third Plenary Meeting during the #FFD4 in Seville, Spain, she stressed that India backs global efforts to modernise tax systems and stop illegal money flows.

The Finance Minister also said that India’s strong rules help innovation and make the financial system more stable. She highlighted how India’s financial sector supports small businesses by giving easier credit and reducing compliance costs. Sitharaman added that India has built a lively ecosystem for start-ups and public-private partnerships in infrastructure.

She pointed out that India wants changes in the international financial system to make it fairer, including reforms in Multilateral Development Banks (MDBs) and better credit rating practices. She said MDB lending should focus on long-term goals and have strict checks to make sure funds are used well.

Sitharaman shared that India’s people-first policies have helped lift 250 million people out of poverty and empowered them through digital public tools. But for the world to grow strongly, she said, countries also need global support. She stated that India continues to back South-South and Triangular Cooperation and called on rich nations to increase climate finance that is easier to access and cheaper, especially for countries most at risk. Quoting India’s age-old belief that “The World is one family,” she urged all nations to work together for change that helps everyone.

The Minister also noted that as many Sustainable Development Goals are still behind target and developing nations face a funding gap of over USD 4 trillion each year, urgent action is needed to meet global goals.