India flags grave concern over proposed UNDP funding cuts to South-South cooperation

India has raised “grave concern” over a proposed sharp reduction in funding by the United Nations Development Programme (UNDP) for the United Nations Office for South-South Cooperation (UNOSSC), warning that the move could weaken a key pillar of the global development framework.

India’s Permanent Representative to the UN, Ambassador P Harish said the proposed allocation under UNDP’s Strategic Framework for 2026–2029 envisages a 46 per cent cut for UNOSSC, which he described as disproportionate and damaging.

Speaking at the First Regular Session of UNDP’s Executive Board on Tuesday, Harish said South-South cooperation remains central to the UN development system and is vital for developing countries striving to meet the Sustainable Development Goals (SDGs).

“India strongly reiterates that South-South cooperation is a foundational pillar of the United Nations development system and an indispensable instrument for developing countries in achieving the Sustainable Development Goals,” Harish said while delivering a statement at the First Regular Session of the Executive Board of the UNDP.

“This sharp and disproportionate cut is understandably far exceeding the average reductions across UNDP programmes and would seriously compromise UNOSSC’s capacity to effectively discharge its mandate, including its critical role in trust fund management that directly serves the interests of a large number of developing countries,” he said.

India urged UNDP to ensure that ongoing reforms do not dilute UNOSSC’s operational and programmatic capacity, cautioning that such a move would weaken South-South cooperation in practice. “India therefore firmly urges UNDP to urgently reconsider and review the proposed allocation to UNOSSC and expects these serious concerns to be addressed in the final Strategic Framework for 2026–2029,” Harish said.

UNDP Administrator Alexander De Croo told member states that the agency managed to sustain delivery in 2025 despite an “exceptionally constrained and deteriorating funding environment” across the development sector.

Looking ahead, De Croo said UNDP expects further deep cuts in 2026, with core funding projected to fall by USD 188 million compared to 2024 levels, leaving core resources at just 11 per cent of overall funding.

In 2025, UNDP cut more than USD 80 million from its institutional and core programme budget, while a further USD 113 million reduction is projected for 2026, he added, noting that budget reviews would continue throughout the year based on income levels.

De Croo said UNOSSC as the UN’s global focal point for South-South and triangular cooperation, had helped scale solutions based on shared national experiences. He said that UNOSSC facilitated trust fund projects across 50 developing countries.

India highlighted that its partnership with UNDP spans over six decades, making it one of the organisation’s longest-standing and most comprehensive country relationships. Over the years, UNDP has supported India’s priorities in areas such as poverty reduction, social inclusion and institutional strengthening, working closely with states and Union Territories.

Harish said UNDP has also partnered with NITI Aayog to advance the SDGs at national and sub-national levels through effective localisation efforts.

He said that the UNDP Country Programme for India (2023–27) outlines an ambitious roadmap aligned with national priorities, including institution-building, economic opportunity expansion and climate-resilient development. Its focus areas include sustainable finance, inclusive health systems, skills and livelihoods, women and youth employment, climate action, biodiversity conservation, the circular economy and disaster resilience.

India also underscored the value of UNDP’s role in implementing the India-UN Development Partnership Fund, through which India supports demand-driven South-South cooperation across more than 70 partner countries.

As nations work to recover and accelerate progress toward the 2030 Agenda, Harish said adjustments in global financial systems, national policies and production patterns are essential, adding that UNDP’s role as a trusted development partner remains critical.

Last month, UNDP announced plans to relocate a significant number of positions from its New York headquarters as part of efforts to adapt to changing financial realities and strengthen its development impact. Nearly 400 posts are affected, with around three-quarters moving to Bonn, Germany, and the remainder to Madrid, Spain.

With inputs from agencies