Asheville, September 2: India and the World Bank Group have discussed expanding their partnership beyond traditional lending. The new focus will be on infrastructure finance, digital public infrastructure, tourism, and mobilizing private capital.
Finance Minister Nirmala Sitharaman met with World Bank Group President Ajay Banga during the G20 Finance Ministers and Central Bank Governors meeting in Asheville. A statement released after the meeting highlighted the ongoing collaboration between India and the World Bank Group.
Sitharaman expressed gratitude for the expedited processing of a $1.5 billion development policy financing. She also welcomed the support from the International Finance Corporation (IFC) provided to the MSME sector through the Small Industries Development Bank of India (SIDBI). This assistance was processed in record time and has positively impacted India’s MSME sector.
The meeting addressed strengthening the India-World Bank Group partnership and increasing the use of financing tools. Both leaders discussed the significant role of the Multilateral Investment Guarantee Agency (MIGA) in India. Under the proposed collaboration, systematic use of guarantees and mobilizing more private capital will enhance the country’s corporate, infrastructure, and municipal bond markets.
They also considered a sector-based, programmatic approach for infrastructure. This arrangement aims to shift the partnership’s focus from individual projects to larger sector programs.
Ajay Banga noted the substantial changes in India’s infrastructure and discussed opportunities for utilizing the World Bank Group’s resources to support India’s development ambitions.
The conversation also included enhancing MIGA’s involvement in India and the use of political risk insurance for Indian companies investing abroad.
Sitharaman mentioned India’s efforts to create a Global Digital Public Infrastructure Knowledge Hub in collaboration with the World Bank Group. This proposed hub will explore technology applications across various sectors, including agriculture. The finance minister expressed hope for its prompt launch.
She proposed developing globally competitive tourism destinations under the new India-World Bank Group Country Partnership Framework. This initiative will be based on a coordinated model, integrating policy and infrastructure support from the International Bank for Reconstruction and Development (IBRD), private sector investment from the IFC, and guarantees from MIGA.
Both parties discussed evolving this relationship from traditional transactions to a strategic platform for global knowledge, innovation, and mobilizing private capital, combining India’s scale and capacity with the World Bank’s international expertise.
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