Archive · 2 Sep 2026
India and World Bank Discuss Deeper Capital Cooperation
India’s finance minister, Nirmala Sitharaman, met World Bank President Ajay Banga.
They wanted India and the World Bank to work together in more ways than traditional loans.
They discussed using guarantees to attract private money for bonds and infrastructure.
They also talked about insurance for Indian companies investing in other countries.
Another plan is to create a knowledge hub for digital public infrastructure in India.
This hub could study how technology can help areas such as farming.
The leaders also discussed building tourism destinations with help from different World Bank institutions.
Sitharaman separately spoke with IMF chief Kristalina Georgieva about India’s economy and the global outlook.
Nirmala Sitharaman and Ajay Banga discussed expanding India–World Bank cooperation beyond traditional lending.
Sitharaman welcomed the speedy processing of $1.5 billion in Development Policy Financing and IFC support for MSMEs through SIDBI.
The leaders considered a larger MIGA role in India’s corporate, infrastructure and municipal bond markets through guarantees.
They discussed infrastructure credit enhancement, political-risk insurance for Indian companies overseas and a digital public infrastructure knowledge hub.
Sitharaman separately met IMF chief Kristalina Georgieva to discuss India’s growth, the global outlook and continued economic cooperation.
- Who
- India’s Finance Minister Nirmala Sitharaman, World Bank Group President Ajay Banga and, in a separate meeting, IMF Managing Director Kristalina Georgieva.
- What
- They discussed deepening India’s cooperation with the World Bank Group and IMF, including infrastructure finance, bond markets, digital technology, tourism and economic policy.
- When
- September 2, during the G20 Finance Ministers and Central Bank Governors Meeting.
- Where
- The World Bank meeting took place in Asheville; reports also described the broader meetings as being held in Washington.
- Why
- To expand financing options, mobilise private capital, support India’s development goals and strengthen economic cooperation.
- Development financing
- The World Bank Group processed $1.5 billion in Development Policy Financing for India.
- MSME support
- The International Finance Corporation supported micro, small and medium enterprises through the Small Industries Development Bank of India.
- Bond markets
- The leaders discussed using Multilateral Investment Guarantee Agency guarantees to deepen corporate, infrastructure and municipal bond markets.
- Infrastructure
- They considered a sector-based, programmatic approach to credit enhancement for infrastructure.
- Digital infrastructure
- India and the World Bank Group are working toward a Global Digital Public Infrastructure Knowledge Hub in India, including technology applications in agriculture.
- Tourism
- India proposed developing globally competitive tourism destinations through coordinated World Bank Group support under its Country Partnership Framework.
- IMF discussions
- Sitharaman and Kristalina Georgieva discussed India’s growth trajectory, the global economic outlook and continued India–IMF engagement.
