A World in Flux: Sitharaman flags need to reshape institutions for present

At the launch of 'A World in Flux', Finance Minister Nirmala Sitharaman said multilateral institutions are now in limbo and stressed the urgent need to reshape them for today's rapidly evolving world

A new book titled 'A World in Flux: India’s Economic Priorities' was launched on Saturday at the India International Centre, New Delhi. The festschrift honours economist Dr Shankar Acharya and was released in the presence of several leading economists and policymakers.

 

Published by Rupa Publications, the book is co-edited by Professor Amita Batra of Jawaharlal Nehru University and veteran journalist A K Bhattacharya. It brings together essays by noted economists and policy experts, examining the evolving global context and its implications for India.

Finance Minister reflects on global flux

Union Finance Minister Nirmala Sitharaman, the chief guest at the event, addressed the audience with remarks on the rapidly changing global economic environment.

 

“The phrase ‘A World in Flux’ is indeed an apt description of the times we’re living in,” she said, pointing to the growing uncertainties facing multilateral institutions. “Institutions that were once seen as stable and effective - particularly multilateral institutions - now appear to be in a state of limbo. Not just financial institutions, but strategic ones as well.”

 

Referring to India’s G20 presidency, Sitharaman noted that these challenges had been central to India’s Finance Track agenda. “During the G20, we saw an opportunity to address the growing challenges in the global financial architecture,” she said.

 

 

She highlighted the role of an expert committee that provided key recommendations during the presidency. These were well received by Brazil and are expected to be carried forward by South Africa. “At that time, the committee’s terms of reference seemed adequate. But with hindsight, perhaps those terms could have been even broader, given the complexity of today’s world. The flux we’re experiencing isn’t abstract - it’s real, visible, and accelerating.”

 

Sitharaman emphasised that these changes are not limited to institutions and experts, but are being felt by ordinary people. “We’re seeing an increasingly complex global financial environment. The challenge is not only for India, but for the world: how do we shape institutions that are relevant for today and tomorrow?” she said, adding that currency frameworks themselves are now evolving rapidly.

Amita Batra on the book’s relevance

Speaking at the launch, Professor Amita Batra remarked on the book’s origins and growing relevance. “At the time we began work on it, global institutions, economic frameworks, foreign and trade policy instruments were already being used in new and different ways.”

 

She explained that while the title A World in Flux was an intuitive choice then, its relevance has only increased. “The global context today continues to be uncertain. The world economy is increasingly shaped by trade protectionism, state intervention, and industrial policy,” she said.

 

These shifts, she added, raise important questions about the relevance of the old multilateral order and the possible need for a new one. “If so, what should its parameters be?” she asked.

 

The book, she noted, seeks to explore how these global dynamics are reshaping India’s development priorities and the opportunities they present. “With that framework in hand, we worked to bring together contributors who had not only deep expertise in these areas but also a professional association with Dr Shankar Acharya,” she said.

Panel discussion features leading economic voices

 The event featured a panel discussion with several distinguished speakers, including:

 

• Shyam Saran, President, India International Centre
• Montek Singh Ahluwalia, Former Deputy Chairman, Planning Commission
• Dr Shankar Acharya, Former Chief Economic Adviser, Government of India
• Sajjid Z. Chinoy, Managing Director and Chief India Economist, JP Morgan
• Amita Batra, Co-editor and Professor at JNU
• AK Bhattacharya, Co-editor and Editorial Director, Business Standard

 

The discussion offered an opportunity to reflect on India’s shifting economic landscape, with a focus on policy priorities amid an increasingly uncertain global order.