India and World Bank Group explore deeper cooperation on infrastructure, digital public infrastructure, tourism and private capital mobilisation…reports Asian Lite News Desk
India and the World Bank Group have discussed expanding their partnership beyond traditional lending, with greater emphasis on infrastructure finance, digital public infrastructure, tourism and private capital mobilisation.
Finance Minister Nirmala Sitharaman held talks with World Bank Group President Ajay Banga on the sidelines of the G20 Finance Ministers and Central Bank Governors Meeting in Asheville, according to a statement issued after the meeting.
Sitharaman welcomed the World Bank Group’s continued engagement with India and acknowledged the speedy processing of $1.5 billion in Development Policy Financing.
She also welcomed the International Finance Corporation’s support for micro, small and medium enterprises through the Small Industries Development Bank of India. The assistance was processed in record time and has had a positive impact on India’s MSME sector, the statement said.
The discussions focused on strengthening the India-World Bank Group partnership and widening the use of the institution’s financing instruments.
The two sides discussed a larger role for the Multilateral Investment Guarantee Agency in India. The proposed engagement would aim to deepen corporate, infrastructure and municipal bond markets through greater use of guarantees and increased mobilisation of private capital.
They also considered a sector-based, programmatic approach to credit enhancement for infrastructure. This would broaden the partnership from individual projects to wider programmes across key sectors.
Banga noted the significant transformation of India’s infrastructure and highlighted opportunities to use World Bank Group instruments more extensively to support the country’s development ambitions.
The discussions also covered a possible expansion of MIGA’s engagement in India and the use of political risk insurance for Indian companies investing overseas.
Sitharaman raised India’s cooperation with the World Bank Group on establishing a Global Digital Public Infrastructure Knowledge Hub in the country. The proposed hub would explore the use of technology across sectors including agriculture. She expressed hope for early progress towards its launch.
Tourism was another key area discussed during the meeting. Sitharaman proposed developing globally competitive tourism destinations under the new India-World Bank Group Country Partnership Framework.
The proposed model would combine policy and infrastructure support from the International Bank for Reconstruction and Development, private-sector investment from the IFC and guarantees from MIGA.
The meeting also considered the broader direction of India and the World Bank Group’s relationship, with discussions on moving beyond a conventional lender-borrower arrangement towards a strategic platform for knowledge, innovation and private capital mobilisation.
Under this approach, India’s scale and implementation capacity would be combined with the World Bank Group’s international expertise and range of financing instruments.
