Sitharaman Pushes Deeper Global Economic Ties, Private Capital Mobilisation At G20 Meetings

Washington: Union Finance Minister Nirmala Sitharaman pushed for deeper trade, investment and financial cooperation with key global partners during bilateral meetings on the sidelines of the G20 Finance Ministers and Central Bank Governors meeting in Asheville, with a focus on infrastructure, emerging technologies and private capital mobilisation.

During her meeting with World Bank President Ajay Banga, both leaders discussed further strengthening the partnership between India and the international financial institution to deepen corporate, infrastructure and municipal bond markets.

The Union Finance Minister appreciated the World Bank Group’s continued engagement with India and acknowledged the speedy processing of the Development Policy Financing (DPF) of USD 1.5 billion,” a Finance Ministry statement said in a post on X.

It said Sitharaman appreciated the International Finance Corporation’s (IFC) support to MSMEs through SIDBI, which was processed in record time and has had a positive impact on the MSME sector.

“The two leaders discussed further strengthening the India–World Bank Group partnership, including exploring a larger role for MIGA (Multilateral Investment Guarantee Agency) in India to deepen corporate, infrastructure and municipal bond markets through systematic use of guarantees and greater mobilisation of private capital,” the Finance Ministry said.

It said the discussions also covered a sector-based, programmatic approach to credit enhancement for infrastructure.

Banga appreciated the significant transformation in India’s infrastructure and noted the opportunities to further leverage the World Bank Group’s instruments to support India’s development ambitions, including through MIGA’s engagement and political risk insurance for Indian companies investing overseas, the statement said.

Sitharaman also highlighted India’s engagement with the World Bank Group on establishing a Global Digital Public Infrastructure Knowledge Hub in India, including exploring opportunities to leverage technology in areas such as agriculture, and looked forward to early progress towards its launch.

The Union Finance Minister also discussed developing globally competitive tourism destinations under the new India–World Bank Group Country Partnership Framework, through a coordinated approach combining International Bank for Reconstruction and Development (IBRD) policy and infrastructure support, IFC investment and MIGA guarantees, it said.

The two leaders further discussed evolving the partnership from a traditional lender-borrower relationship towards a strategic platform for global knowledge, innovation and private capital mobilisation, combining India’s scale and implementation capacity with the World Bank Group’s global expertise and financing instruments, the Finance Ministry statement said.

Finance Minister Nirmala Sitharaman also met IMF Managing Director Kristalina Georgieva and discussed the global economic outlook and India’s evolving growth trajectory.

"The discussion also covered the structural shifts underway in India and the importance of appropriately reflecting these developments in macroeconomic assessments and growth projections,” the Finance Ministry said in a statement. It said the two leaders discussed the global economic outlook and India’s evolving growth trajectory.

“Excellent exchange of views with India’s Finance Minister @nsitharaman - reflecting on India’s stellar growth performance, the global outlook, and our shared resolve to work ever-more-closely together,” Georgieva said in a post on X.

The IMF Managing Director appreciated India’s strong economic performance and track record, noting the strength built by the Indian economy, the Finance Ministry statement said.

The Finance Minister highlighted India’s strong macroeconomic fundamentals and the importance of robust, evidence-based surveillance frameworks that adequately reflect structural shifts in Emerging Markets and Developing Economies (EMDEs).

The discussions also covered the IMF’s capacity development initiatives, including support for strengthening institutional capacity, macroeconomic policymaking and statistical systems in EMDEs.

Both leaders emphasised the importance of continued India-IMF engagement in strengthening analytical capabilities, supporting sound macroeconomic policies and contributing to global economic resilience.