Union Finance Minister Nirmala Sitharaman held significant bilateral meetings with World Bank Group President Ajay Banga and European Commission Commissioner for Economy and Financial Affairs Valdis Dombrovskis on the sidelines of the G20 Finance Ministers and Central Bank Governors Meeting in Asheville, hosted by the United States this year.

Her meeting with Ajay Banga centred on deepening economic partnerships, expanding green and infrastructural investments, accelerating private capital mobilisation, and navigating strategic global technologies and trade initiatives.

Sitharaman appreciated the speedy processing of the Development Policy Financing worth approximately ₹12,500 crores and the International Finance Corporation’s timely support to MSMEs through SIDBI, which was processed in record time and had a positive impact on the MSME sector.

The two leaders discussed strengthening the India–World Bank Group partnership, including exploring a larger role for MIGA in India to deepen corporate, infrastructure and municipal bond markets through systematic use of guarantees and greater mobilisation of private capital.

They also examined a sector-based, programmatic approach to credit enhancement for infrastructure. Banga acknowledged India’s significant transformation in infrastructure and noted opportunities to further leverage World Bank Group instruments, including MIGA’s engagement and political risk insurance for Indian companies investing overseas.

Sitharaman highlighted India’s engagement with the World Bank Group on establishing a Global Digital Public Infrastructure Knowledge Hub in India, with opportunities to leverage technology in areas such as agriculture.

She looked forward to early progress towards its launch. She also discussed developing globally competitive tourism destinations under the new India–World Bank Group Country Partnership Framework, combining IBRD policy and infrastructure support, IFC investment and MIGA guarantees. 

Both sides agreed to evolve the partnership from a traditional lender–borrower relationship into a strategic platform for global knowledge, innovation and private capital mobilisation, combining India’s scale and implementation capacity with the World Bank Group’s expertise and financing instruments.

In her meeting with Valdis Dombrovskis, Sitharaman discussed further deepening of the India–EU Economic and Financial Partnership, including through the India–EU macroeconomic dialogue and the Trade and Technology Council. They also reviewed ongoing negotiations on the India–EU Free Trade Agreement and Investment Protection Agreement, reaffirming their shared commitment to advance these engagements.

The two sides exchanged views on strengthening resilient and diversified supply chains, including cooperation on critical raw materials and technologies.

Sitharaman emphasised the importance of not only sourcing critical minerals but also developing processing and value-addition capabilities.

They also explored opportunities for greater cooperation in FinTech, AI and generative AI, fostering stronger engagement between Indian and European Start-Ups.

Both sides reaffirmed their commitment to further strengthen the India–EU partnership and work together on shared priorities. These crucial meetings with key global partners underscore India’s proactive role in shaping global economic and financial frameworks at the G20 Summit hosted by the United States this year.

ANI