India’s Tax Reforms, Digital Drive Boost Revenue, Cut Compliance Costs: FinMin Sitharaman

Addressing global delegates, Sitharaman said India’s focus on comprehensive tax reforms and digitalisation has led to measurable improvements in revenue mobilisation

FinMin stressed that MDB financing should align with long-term development goals and be monitored closely to ensure effective utilisation

Source : PTI

Union Finance and Corporate Affairs Minister Nirmala Sitharaman on Tuesday highlighted India’s progress in modernising its tax administration and strengthening its financial infrastructure, stating that the country's reforms have boosted revenue and reduced compliance burdens. Her remarks came during the Third Plenary Meeting of the Fourth International Conference on Financing for Development held in Seville.

Addressing global delegates, Sitharaman said India’s focus on comprehensive tax reforms and digitalisation has led to measurable improvements in revenue mobilisation. “We support international cooperation to modernise tax systems and curb illicit financial flows,” she said. “India's comprehensive tax reforms and digital transformation in tax administration have increased revenue and reduced compliance costs.”

She added that India’s regulatory framework aims to encourage innovation while ensuring financial stability. “The Indian financial system promotes inclusivity through easier credit and lower compliance costs, especially for MSMEs,” Sitharaman noted, emphasising the country’s efforts to create a dynamic startup ecosystem and attract public-private partnerships in infrastructure.

Strengthening International Financial Architecture

Calling for greater equity in global financial systems, Sitharaman advocated reforms to Multilateral Development Banks (MDBs) and the creation of more equitable credit rating systems. She stressed that MDB financing should align with long-term development goals and be monitored closely to ensure effective utilisation.

India, she said, continues to prioritise people-centric policies, having lifted 250 million citizens out of multidimensional poverty. “We have empowered communities through inclusive Digital Public Infrastructure,” she noted.

Global Cooperation And Development Goals

The Finance Minister called for greater international collaboration to support sustainable development, especially in vulnerable regions. “We remain committed to South-South and Triangular Cooperation,” she said, urging developed nations to increase climate finance in a predictable and concessional manner.

Drawing on India’s ethos of “Vasudhaiva Kutumbakam” — the world is one family — Sitharaman said global cooperation is key to driving meaningful progress. Acknowledging that several Sustainable Development Goals (SDGs) remain off track, she said the current global financing gap of over $4 trillion per year for developing countries underscores the need for urgent and transformative action.

As the FFD4 conference marks a decade since the adoption of the Addis Ababa Action Agenda, Sitharaman reaffirmed India’s commitment to collaborative efforts that ensure inclusive, sustainable development for all.