Blitz Bureau
In a strategic and increasingly assertive campaign on the world stage, India is spearheading a long-overdue charge to fundamentally reshape the global financial architecture. Led by Finance Minister Nirmala Sitharaman, New Delhi’s demands are not mere diplomatic overtures; they represent a critical economic imperative, inextricably linked to its ambitious mission of transforming into a developed nation —’Viksit Bharat’ — by 2047, the centenary of its Independence.
The targets of this push are the twin pillars of the post-war economic order: the Bretton Woods institutions (the IMF and World Bank) and the powerful oligopoly of the “Big Three” credit rating agencies. For India, the path to 2047 runs directly through the corridors of these institutions, and it is determined to rewrite the rules that have governed them for decades.
The core of India’s argument is that the current system is an anachronism, a relic of a world that no longer exists. It was designed when India was a fledgling, impoverished nation. Today, as the world’s fifth-largest and fastest-growing major economy, India finds itself constrained by a financial framework that fails to recognise its economic heft and, in many ways, actively penalises its potential.
This is most evident in the “unfair gaze” of credit rating agencies. Despite robust macroeconomic fundamentals, political stability, and a burgeoning market, agencies like S&P, Moody’s, and Fitch have kept India at the lowest rung of investment grade.
This isn’t just a matter of prestige. This rating directly translates into higher borrowing costs for both the Government and India’s vibrant private sector. The perception premium — the extra interest paid due to a subjective, and arguably biased, risk assessment — siphons billions of dollars annually. This is capital that could otherwise be fast-tracking the Viksit Bharat mission: building world-class highways and ports, modernising the energy grid for a green transition, funding cutting-edge R&D, and strengthening the health and education infrastructure for over a billion people. The road to becoming a developed nation is paved with investment, and a biased financial system acts as a persistent, costly tollgate.
To dismantle this, India’s proposals are comprehensive and clear. At the IMF and World Bank, the primary demand is for a radical overhaul of the quota and voting system. India argues that a country’s say in global economic governance should reflect its share of the global economy. A revised quota formula, giving greater weight to GDP, would significantly increase the influence of India and other major emerging economies.
This is coupled with a call to end the archaic convention where the World Bank is led by an American and the IMF by a European, advocating instead for a transparent, merit-based selection process open to all nationalities.
Simultaneously, India is championing the G20’s vision for “bigger, better, and bolder” Multilateral Development Banks (MDBs). This involves pushing them to optimise their capital to unlock hundreds of billions in additional lending for climate action and infrastructure, without which the sustainable development goals of the Viksit Bharat agenda would remain a distant dream.
Unhappy with hegemony of global FIs, India pushes for radical reforms in pursuit of “Viksit Bharat” vision by 2047
The second front in this battle is against the opaque methodologies of credit rating agencies. India is demanding greater transparency, objectivity, and an end to the “sovereign ceiling” policy, which unfairly caps the ratings of highly-rated Indian corporations based on the country’s sovereign rating. This policy acts as a glass ceiling for India’s globally competitive private sector, hindering its ability to raise capital on fair terms and drive the nation’s growth engine.
Recognising that pleading for reform alone is insufficient, India is pursuing a shrewd twin-track strategy. From within, it is leveraging its growing diplomatic clout in forums like the G20 to build a broad coalition for change. Its successful G20 Presidency, which resulted in the New Delhi Leaders’ Declaration, showcased its ability to forge consensus and place the concerns of the Global South at the center of the agenda.
From without, India is actively building parallel structures. The BRICS New Development Bank (NDB) stands as the most potent example. With its principles of equal voting rights for founding members and a focus on lending in local currencies, the NDB is more than just an alternative source of finance; it is a working model of a more equitable multilateralism. It serves as a powerful catalyst, demonstrating that a different, more democratic system is not only possible but operational.
This global campaign is the external-facing counterpart to India’s domestic reforms. The ‘Viksit Bharat’ mission rests on the pillars of internal dynamism and a favourable external environment. While India works to improve its ease of doing business, boost manufacturing, and foster innovation at home, it recognises that these efforts can be hamstrung by a global financial system that is not fit for purpose. Achieving the goal of a $30 trillion economy by 2047 requires unprecedented access to global capital at fair prices.
The journey is fraught with challenges. The G7 nations, while paying lip service to MDB evolution, remain reluctant to cede the voting power they have held for nearly 80 years. But the confluence of global crises — the pandemic, climate change, and widespread debt distress — has created a unique moment of leverage for the Global South. India’s push is therefore not just for itself, but for a more stable and equitable world. It is a declaration of intent: On its path to 2047, India will not be a passive rule-taker but an active rule-maker, shaping a global financial order that is as dynamic and ambitious as its own vision for the future.