Union Finance Minister Nirmala Sitharaman has called for greater private capital mobilisation and the creation of productive, better-paid jobs, saying these remain the most effective pathway to poverty reduction and shared prosperity amid growing energy market stress, trade fragmentation, climate pressures and rapid technological change.
Sitharaman made the remarks while participating as India’s Governor of the World Bank in the 114th Meeting of the Development Committee Plenary in Bangkok, Thailand, on Thursday. The meeting focused on the theme “Private Capital Mobilisation and Jobs”.
Job Creation Requires Strong Economic Foundations
Emphasising that sustainable job creation requires strong ecosystems rather than isolated interventions, the Finance Minister said high-quality and inclusive economic growth depends on macroeconomic stability, efficient infrastructure, simple and predictable regulations, and broad-based access to finance and skills.
She highlighted the importance of last-mile connectivity to energy and job markets, large-scale physical and digital public infrastructure, financial inclusion, and regulatory trust in market forces in improving productivity and generating jobs at scale.
Private Sector Must Remain at the Centre of Development
Sitharaman said private enterprises, particularly micro, small and medium enterprises (MSMEs) and startups, would play a major role in job creation, making private investment essential to the development agenda.
She stressed that the success of private capital mobilisation should be measured not merely by the volume of financing raised, but by tangible outcomes, including jobs created and improvements in productivity.
The Minister called for stronger collaboration among the International Bank for Reconstruction and Development (IBRD), the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA), along with faster operationalisation of the World Bank Group Guarantee Platform.
Noting that developing economies face a shortage of risk capital, she said guarantees and risk-mitigation instruments are among the most effective tools for accelerating risk-capital formation and attracting private investment.
Competitive and Affordable Financing Remains a Priority
The Finance Minister said the World Bank must continue to serve as a development partner by offering competitive pricing, expanding local-currency financing, strengthening guarantee products and reducing transaction costs.
She emphasised that affordable, predictable and accessible financing must remain central to the World Bank’s Middle-Income Countries strategy.
World Bank Knowledge Resources Should Address Market Failures
Sitharaman said the World Bank Group’s knowledge resources should focus on addressing market failures in critical areas such as urbanisation, tourism, agricultural exports and critical minerals.
She also highlighted the potential of artificial intelligence (AI) to strengthen state capacity in developing countries, calling for the technology to receive greater attention in the Bank’s operational and knowledge agenda.
Sitharaman Calls for Review of Governance Indicators
The Finance Minister reiterated India’s longstanding concerns regarding the Worldwide Governance Indicators and similar composite assessments.
Given their far-reaching implications, she called for a comprehensive review and revision of existing methodologies to ensure they are transparent, objective, evidence-based and better aligned with current realities and the diverse development experiences of member countries.
She said such a review would be essential to preserving the integrity of the World Bank’s knowledge products.
Reforms Must Strengthen Developing Countries’ Voice
Sitharaman said the evolution of the World Bank must strengthen its voice and development impact, adding that the ultimate measure of success would be whether reforms help countries create jobs, raise productivity, reduce poverty and improve living standards.
She also reiterated the importance of strengthening the voice and representation of developing countries in the Bank’s governance architecture.
“Our constituency stands ready to work with fellow shareholders, management, and development partners to advance these objectives,” she said.
-PIB inputs
