Asheville, Sept. 2: India and the World Bank Group have discussed expanding their partnership beyond traditional lending, with a greater focus on infrastructure financing, digital public infrastructure, tourism and mobilisation of private capital.
Finance Minister Nirmala Sitharaman met 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.
During the discussions, Sitharaman welcomed the World Bank Group’s continued engagement with India and acknowledged the speedy processing of $1.5 billion in Development Policy Financing.
The finance minister also welcomed the International Finance Corporation’s support for India’s micro, small and medium enterprises through the Small Industries Development Bank of India. According to the statement, the assistance was processed in record time and has had a positive impact on the country’s MSME sector.
The meeting focused on strengthening the India-World Bank Group partnership and widening the use of the institution’s financing instruments across sectors.
A key area of discussion was a larger role for the Multilateral Investment Guarantee Agency, or MIGA, in India. The proposed engagement would seek to deepen India’s corporate, infrastructure and municipal bond markets through greater use of guarantees and increased mobilisation of private capital.
The two sides also considered a sector-based, programmatic approach to credit enhancement for infrastructure. Such an approach could shift the focus from financing individual projects to supporting broader programmes across key sectors.
Banga highlighted the significant transformation of India’s infrastructure and pointed to opportunities for using World Bank Group instruments more extensively to support the country’s development ambitions, the statement said.
The discussions also covered the possible expansion of MIGA’s engagement in India and the use of political risk insurance for Indian companies investing overseas.
Digital public infrastructure emerged as another area of cooperation. Sitharaman raised India’s ongoing work with the World Bank Group on establishing a Global Digital Public Infrastructure Knowledge Hub in the country.
The proposed hub would examine ways to apply digital technology across sectors, including agriculture. Sitharaman expressed hope for early progress towards its launch.
Tourism was also discussed as a potential area for expanded cooperation. Sitharaman proposed developing globally competitive tourism destinations under the new India-World Bank Group Country Partnership Framework.
The proposed model would bring together different arms of the World Bank Group. Policy and infrastructure support would be provided through the International Bank for Reconstruction and Development, while the IFC could facilitate private-sector investment and MIGA could provide guarantees.
The broader objective discussed during the meeting was to move the India-World Bank Group relationship beyond a conventional lender-borrower arrangement towards a strategic partnership centred on knowledge, innovation and private capital mobilisation.
Under the proposed approach, India’s scale and implementation capacity would be combined with the World Bank Group’s international expertise and range of financing instruments.
The discussions come as India seeks to expand infrastructure investment, strengthen private capital participation and leverage digital technologies across sectors. A broader financing partnership with the World Bank Group could provide additional mechanisms for supporting large-scale development programmes while reducing reliance on conventional project-based lending.
The meeting also underlined the potential for greater cooperation across public infrastructure, private investment, technology and tourism, indicating a wider role for the World Bank Group in India’s development priorities.
