Permanent Mission of India
New York
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2026 Financing for Development Forum

            International financial architecture and systemic issues (Ministerial session)

Transforming the international financial architecture: Priorities for reform

Statement by Ms. Petal Gahlot, First Secretary

20 April 2026

Thank you, Mr. President.

Building on the Sevilla Commitment, India wishes to underscore that stronger multilateral cooperation is critical to achieving the Sustainable Development Goals. A fair, inclusive, and development-oriented global financial system is essential to bridge the USD 4 trillion SDG financing gap. Member States and international institutions must expand access to concessional and blended finance, while preserving the policy space of developing countries to define and pursue their national priorities.

While country-specific structural reforms and domestic resource mobilisation are essential for long-term stability, they may not adequately address immediate liquidity pressures, highlighting the need for timely support from international financial institutions to bridge short-term liquidity gaps and complement ongoing reforms. Measures such as guarantees, credit enhancement mechanisms, and more flexible financing instruments can further improve access to affordable capital, particularly for vulnerable economies.

Mr. President,

Reforming multilateral institutions is essential to make them more representative, legitimate, and effective in responding to today’s complex global challenges. These reforms must enhance the voice and participation of the Global South in the governance structures of the IMF, the Multilateral Development Banks, and other international financial institutions. Inclusive engagement of civil society, academia, and think tanks with Finance Ministries and Central Banks can further enrich policy dialogue, strengthen transparency, and foster accountability.

Regulatory and supervisory cooperation must also remain inclusive, transparent, and responsive to evolving risks. Frameworks need to adapt to technological change, climate-related financial exposures, and increasing market fragmentation, while remaining mindful of national circumstances and capacities.

Finally, Global economic governance must be capable of responding effectively to shocks, ensuring timely and adequate support, and delivering sustainable development outcomes, particularly for developing countries.

I thank you.

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