FM stresses global unity against digital economy tax evasion risks

On Tuesday, the capital city became the center for critical discussions regarding the future of international financial integrity as the 18th Global Forum Plenary Meeting kicked off. While addressing the gathering, Union Finance Minister Nirmala Sitharaman emphasized that the rapidly evolving global economy demands a unified approach to tackle modern tax challenges.

The Finance Minister pointed out that the financial landscape is shifting dramatically due to digitalization. She noted that the rise of new financial products and complex beneficial ownership structures has created a scenario where individual nations can no longer operate in silos. According to Sitharaman, these sophisticated hurdles require immediate and joint action from all jurisdictions involved.

A major portion of her address focused on the critical pillars of trust and safety. Sitharaman stressed that as countries increase the exchange of sensitive information to fight offshore tax evasion, the sanctity of that data must be preserved. She argued that maintaining robust cybersecurity and strict confidentiality is essential to building and sustaining trust between nations.

"In a global economy where interdependence is a fact of life, stable and trusted relationships between jurisdictions are indispensable," Sitharaman stated, underlining the government's stance.

For India, the focus remains on creating a tax system that is fair, sustainable, and credible in the eyes of the public. The Minister explained that India's approach goes beyond simple administrative changes; it is about integrating data exchange with a broader analysis of risk and compliance. She highlighted that despite different legal traditions, nations are united by the common goal of encouraging lawful economic growth while discouraging evasion.

Sitharaman concluded by noting a significant global shift. The world has moved away from an era of financial secrecy to one where transparency is viewed as the cornerstone of responsible governance. She credited institutions like the Global Forum for facilitating this change, proving that international cooperation in tax matters is not just an ideal, but a necessity for a dignified and growing global economy.

The meeting, hosted by the OECD Global Forum on Transparency and Exchange of Information for Tax Purposes, will continue in New Delhi through December 4, 2025.