Union Finance Minister Nirmala Sitharaman on Friday raised concern over the “effectiveness” of multilateral institutions like the United Nations, Security Council, WHO and WTO in addressing the complexities of the contemporary world.

She was speaking at the inaugural session of the Kautilya Economic Conclave 2023 here.

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“The level of effectiveness of their intervention that they were to bring into the global scenario is today is less than an ideal position. Because they have become less effective, what we took for granted is no longer to be taken for granted. We thought if there was a disruption somewhere, the World Trade Organisation (WTO) would come into play or if there is a huge pandemic, the WHO would come to the rescue,” she claimed.

“Similarly, in the developmental agenda of different countries, there would be timely and periodic interventions with which you would see some change or the spirit of inclusiveness so that less developed countries achieve their aspirations… but we find that less effective in all these (global) institutions,” she added.

The Kautilya Economic Conclave 2023 is organised by the Institute of Economic Growth in Mumbai from October 20-22. RBI Governor Shaktikanta Das will also be speaking at the event.

Sitharaman also mentioned that India is working on establishing a template to maintain food security. “There should be a regional balance for basic staples for sufficiency and security,” she said.

She further highlighted the importance of regional balance for basic staples to ensure food sufficiency and security, particularly in the context of global uncertainties.

The minister highlighted 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 and developing countries cannot afford big money for energy transition,” she said.

The senior BJP leader added that 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 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.

The finance minister also talked about global terrorism, saying 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, she remarked.