India’s Tax Reforms and Digital Push Slash Compliance Costs, Boost Revenue, Says FM Sitharaman

India’s Finance Minister Nirmala Sitharaman declared that the country’s tax reforms and digital transformation in tax administration have boosted revenue and reduced compliance costs, showcasing India’s commitment to inclusive growth and global cooperation.

Speaking at the Third Plenary Meeting of #FFD4 in Seville, Spain, Sitharaman highlighted India’s success in modernising its tax system. “India’s comprehensive tax reforms and digital transformation in tax administration have increased revenue and reduced compliance costs,” she said.

Supporting Innovation

She stressed that optimal regulation fosters innovation and stability, adding that India’s financial system promotes inclusivity through easier credit access and lower compliance burdens, especially for MSMEs.

“We have developed a dynamic ecosystem for start-ups and PPPs in infrastructure,” Sitharaman noted.

Call for Global Financial Reform

The finance minister called for reforms in the international financial architecture to enhance inclusivity and equity. She urged multilateral development banks (MDBs) to align lending with long-term development goals and enforce robust monitoring frameworks.

“We support reforms to MDBs and fairer credit rating systems,” she said, underscoring India’s demand for equitable global finance.

People-Centric Development Strategy

Sitharaman said India’s policies have consistently put people at the center of its development strategy, lifting 250 million people out of multidimensional poverty through targeted interventions and inclusive Digital Public Infrastructure (DPI).

She also called for stronger South-South and Triangular Cooperation and urged developed countries to increase predictable and concessional climate finance, especially for vulnerable nations.

Global Solidarity Needed

Referring to India’s civilizational ethos of ‘Vasudhaiva Kutumbakam’ or ‘The World is One Family,’ she emphasized the need for collective action to achieve the Sustainable Development Goals (SDGs).

“We must unite in our efforts to drive meaningful change that benefits all,” she urged.

She warned that with many SDG targets off track and a financing gap exceeding USD 4 trillion annually for developing countries, urgent and transformative action is essential.

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