Often described as the “Davos of security,” the Munich forum brings together heads of state, ministers, military leaders and CEOs to deliberate geopolitical risks.
This year’s conference saw participation from leaders including Ukraine’s President Volodymyr Zelensky, France’s President Emmanuel Macron, UK PM Keir Starmer, European Commission President Ursula von der Leyen, German Chancellor Friedrich Merz, NATO Secretary General Jens Stoltenberg and senior members of the US delegation.Climate justice at the core
Speaking at a session on climate security, Sitharaman emphasised that climate change must be viewed through the lens of equity and development.
She highlighted India’s rising public expenditure on climate action and noted that the country has achieved a substantial portion of its renewable energy commitments ahead of schedule.
Her remarks stressed that nations with historically lower emissions should not bear equal financial burdens. India, she said, is investing heavily in mitigation, adaptation and carbon capture, but global cooperation must reflect differentiated responsibilities.
The FM placed climate financing at the centre of security discussions, aligning with India’s broader push to represent the concerns of the Global South.
Economic diplomacy on the sidelines
On the margins of the conference, Sitharaman held a series of bilateral meetings focused on trade, banking, investment and supply chain partnerships.
In talks with Christine Lagarde, President of the European Central Bank, the Finance Minister discussed financial cooperation following the finalisation of the India–European Union Free Trade Agreement.
She reiterated India’s decision to allow European banks to expand their branch presence to upto 15 branches over four years in the country, signalling regulatory stability.
In a meeting with the German Finance Minister Lars Klingbeil , Sitharaman also reviewed the progress following the recent engagement between PM Modi and Chancellor Friedrich Merz.
The discussions also covered collaboration in metro rail expansion and broader development partnerships.
Sitharaman underlined India’s achievements in digital payments and conveyed New Delhi’s readiness to share its digital public infrastructure expertise as part of deeper economic cooperation.
Engagements with industry executives, including Oliver Zipse of BMW AG, highlighted India’s push in electric mobility, advanced manufacturing and battery ecosystems under its long-term development roadmap.
Discussions with sustainability experts also addressed the challenges facing emerging markets, including tighter global liquidity and shrinking fiscal space amid geopolitical uncertainty.
Strategic signalling
India’s participation at MSC 2026 carried broader strategic signalling.
First, it reinforced the idea that economic policy and security policy are increasingly intertwined.
Second, it strengthened the operational framework of the India–European Union FTA, expanded financial and banking cooperation with Europe, created pathways to facilitate more foreign direct investment from the EU and higher exports to the European markets.
Third, it re-emphasised India as a stable investment destination and a reliable supply chain partner at a time of global fragmentation.
