Finance Minister Nirmala Sitharaman called for reforms to the global financial architecture—including Multilateral Development Banks (MDBs) and international credit rating methodologies—to make them more equitable and responsive to the needs of emerging markets, while delivering greater inclusivity and development impact.en.wikipedia.org+14financialexpress.com+14moneycontrol.com+14
Speaking at the 4th Financing for Development (FFD4) Conference in Seville, Spain (July 1, 2025), Sitharaman stressed the need for:
- MDB lending structures aligned with long-term development objectives and backed by solid monitoring frameworks;moneycontrol.com+5financialexpress.com+5cfo.economictimes.indiatimes.com+5
- Credit rating reforms so that emerging–market strengths—such as strong growth and sound fiscal discipline—are properly reflected, lowering their cost of capital and attracting private investment;moneycontrol.com+1business-standard.com+1
- Early, structured engagement between MDBs and rating agencies to recalibrate sovereign risk models;en.wikipedia.org+15business-standard.com+15moneycontrol.com+15
- Expanded official development assistance (ODA) and increased climate finance that is concessional and accessible for vulnerable countries;economictimes.indiatimes.com+9financialexpress.com+9timesofindia.indiatimes.com+9
She highlighted that despite India’s ascent to the world’s fifth-largest economy, its sovereign rating remains stuck at the lowest investment grade—a result of outdated and opaque rating methodologies.en.wikipedia.org+7moneycontrol.com+7economictimes.indiatimes.com+7
India’s advocacy reflects a broader push by EMDEs at international forums like the G20 and FFD4 to reform MDB mandates, enhance debt transparency, and promote equitable development financing.government.economictimes.indiatimes.com+7financialexpress.com+7economictimes.indiatimes.com+7
Source (full link):
https://www.financialexpress.com/business/banking-finance/india-for-reforms-in-multilateral-banks-fairer-credit-rating-systems-fm/3899503/
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