Highlight
- Finance Minister Sitharaman urges World Bank to avoid one-pronged approach of subsidies
- FM Sitharaman stresses that it is important to differentiate between distorted and targeted subsidies
- Sitharaman said subsidies have made a definite contribution in improving India’s performance
nirmala sitharaman on subsidyFinance Minister Nirmala Sitharaman has urged the World Bank to avoid the “unilateral” approach of subsidies provided by the Indian government and said it is important to differentiate between “distorted subsidies” and “targeted support” to vulnerable households .
Speaking at an intervention of the World Bank Development Committee meeting on Friday (October 14), Sitharaman said subsidies have made a definite contribution in improving India’s performance on several key parameters of the Sustainable Development Goals (SDGs).
“We urge the bank to avoid the one-pronged approach of subsidy. It is important to differentiate between distorted subsidies and targeted assistance to vulnerable families,” Sitharaman said.
As an example, he said that by providing free LPG connections under the Pradhan Mantri Ujjwala Yojana over the past six years, the Government of India has ensured that access to clean cooking methods has reached near saturation for women in India. . He said that it has made a definite contribution in improving India’s performance on several key parameters of the SDGs.
During his intervention, he told the members of the development committee that while it is necessary to eliminate fossil fuels from our energy mix in the quest for energy and food security, India this year built its first pure hydrogen production plant as well as its first 2G. Bioethanol refinery is established. ,
Going forward, he suggested three clear opportunities for the World Bank Group.
First, promoting behavior change to increase energy efficiency and reduce food loss. He said programs such as Lifestyle for the Environment, launched by India on World Environment Day this June, in which World Bank President David Malpass delivered an “amazing keynote address”, can mainstream responsible consumption behavior, he said. Told.
“The second is helping all client countries to arrange concessional financing and technology transfer in areas such as renewable and green energy. And the third is supporting regional integration not only through the IDA but also through the IBRD, the minister said.
On financing the climate and development goals, the World Bank is uniquely positioned to bring all stakeholders together to develop an investment strategy for climate and development finance, he said.
“Nevertheless, we should not focus on the common but internationally agreed basic principle of separate responsibilities. This requires avoiding a one-size-fits-all approach,” she told the development committee.
“Risk mitigation is essential for crowdfunding in private capital. Welcoming the introduction of the scale, we encourage the Bank to increase the share of grants from the current five percent level and work below country levels to support projects with huge climate impacts beyond national borders.” Sitharaman said.
(with inputs from agencies)
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