India's Finance Minister, Nirmala Sitharaman, has called for enhanced international cooperation to tackle emerging challenges in global economic governance. Speaking at the Organization for Economic Cooperation and Development’s (OECD) Global Forum in New Delhi on Tuesday, she emphasized that issues like the digitalization of the economy, new financial products, and complex beneficial ownership structures require a united global response.
Transparency as a Pillar of Fair Governance
Sitharaman stated that for India, transparency in tax matters is more than just an administrative goal; it is a fundamental principle of fairness and responsibility. She argued that when individuals and corporations pay their fair share and tax evasion is curbed, societies become stronger and more equitable. This belief has directly shaped India's legislative and enforcement actions, including laws against illicit financial flows and undisclosed foreign assets.
The minister highlighted India's active participation in global information exchange frameworks—both on request and automatic. Under the automatic exchange system, India receives crucial data about offshore assets held by its citizens that were not reported domestically. This data has empowered enforcement drives, like the recent campaign targeting around 25,000 high-risk assessees with undisclosed foreign income and assets.
New Challenges Demand Joint Action
Looking forward, Sitharaman identified several areas needing urgent collective attention. The digitalization of the economy, novel financial products, and evolving beneficial ownership models pose significant hurdles that no single nation can overcome alone. She stressed that cybersecurity of these systems must also be a top priority. "These challenges demand coordination, trust, and timely exchange of relevant information," she asserted.
Revenue Secretary Arvind Shrivastava, who also spoke at the forum, detailed India's domestic efforts. The country has invested in secure IT infrastructure and data analytics to derive actionable intelligence from the information received through international channels. Measures like the Black Money Act and the Benami Transactions Act have been used in tandem with global data to strengthen enforcement and protect the tax base.
Tax Transparency Fuels National Development
Sitharaman powerfully linked tax transparency to tangible development outcomes. She explained that public infrastructure, education, healthcare, and welfare programs all rely on domestic resources. When wealth evades legitimate taxation, it creates not just a revenue shortfall but a critical development gap, especially for developing nations like India.
"Every rupee or dollar mobilized through transparency can help improve lives," she said, urging the global community to view transparency not merely as a compliance tool but as a foundation for sustainable development and fiscal resilience. The OECD’s Global Forum, which works with 172 member nations to prevent offshore tax evasion, serves as a crucial platform for this ongoing collaboration.
