Statement by H.E. Nirmala Sitharaman at the 108th Meeting of the Development Committee - October 12, 2023

Jul 19, 2026

Statement delivered by H.E. Nirmala Sitharaman, Minister of Finance and Corporate Affairs (India), representing Bangladesh, Bhutan, India, and Sri Lanka at the 108th Development Committee meeting in Marrakech. The remarks begin with condolences for Morocco and Libya earthquake and flood victims, then assess global economic headwinds after COVID-19, including inflation, interest rates, currency pressures, and vulnerabilities. The statement highlights the need to renew multilateralism and outlines recent developments across the constituency, with India’s growth, investment strategy, inflation trends, policy stance, exports, external balances, reserves, and poverty reduction progress.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages9

Reading Time23 min

Statement Overview

Opening Remarks and Global Context

India: Growth, Investment, Inflation, and External Sector

Human Development and Poverty Outcomes

Public Disclosure Authorized Public Disclosure Authorized DEVELOPMENT COMMITTEE (Joint Ministerial Committee of the Boards of Governors ofthe Bank and the Fund on the Transfer of Real Resources to Developing Countries) ONE HUNDRED AND EIGHTH MEETING MARRAKECH, MOROCCO – OCTOBER 12, 2023 DC/S/2023-0065 October 12, 2023 Statement by H.E. Nirmala Sitharaman Minister of Finance and Corporate Affairs Ministry of Finance India Representing the Constituency of Bangladesh, Bhutan, India, and Sri Lanka Statement by H.E. Nirmala Sitharaman Minister of Finance and Corporate Affairs Ministry of Finance India Representing the Constituency of Bangladesh, Bhutan, India, and Sri Lanka 108th Meeting of the Development Committee October 12, 2023 Marrakech, Morocco 1. At the outset, I express deep condolences to families of the victims of the earthquake and floods in Morocco and Libya. India stands in solidarity with the people and authorities of Morocco and Libya as they endeavour to recover from the devastating impact of these disasters. 2. Today, as we meet, the global economic landscape is still marked by unprecedented challenges to economic growth and stability. In the aftermath of the COVID-19 pandemic, as economies seek to navigate complex paths to recovery, they continue to be confronted by supply chain disruptions, labor market shifts, high interest rates, inflationary pressures, currency depreciation and banking sector vulnerabilities, all of which have increased fiscal pressures. While many economies have shown resilience, many others are grappling with slower growth rates, rising debt burdens and socio-economic disparities. 3. The headwinds to global economic growth, exacerbated by multiple and overlapping crises of recent years, and increasing geo-political tensions, threaten the achievement of the 2030 Sustainable Development Goals (SDGs) . These are indeed, testing times for multilateralism and there is a pressing need to reimagine multilateral institutions so that they remain relevant, capable and effective to address the challenging circumstances with speed and scale. Therefore, the significance of our collective efforts towards transforming the World Bank into a ‘Better, Bigger and more Effective Bank’can hardly be overemphasized. 4. With these brief remarks, I take this opportunity to outline the recent economic developments in our constituency countries. INDIA 5. Despite global headwinds, on account of stronger-than-expected growth in the fourth quarter ofFY23 driven by robust domestic investment, the IMF, in its World Economic Outlook of July 2023 has revised India’s real GDP growth forecast for FY24 to 6.1 per cent. Forecasts by other international organisations are higher. The robustness of domestic investment is the result of the government’s continued emphasis on capital expenditure, which is expected to drive growth in the coming years. In FY24, the Union Government increased the capital outlay by 33.3 per cent, raising the share of capital expenditure in total expenditure from 12.3 per cent in FY18 to 22.4 per cent in FY24 . 6. Given the importance of private investment in accelerating economic growth, the Government has been making various attempts to raise investment by the private sector. The Production-Linked Incentive (PLI) scheme is providing capital expenditure-linked incentives to 14 key sectors. The PMGatishakti scheme, coupled with the National Infrastructure Pipeline (NIP), is expected to encourage private-sector participation in creating new infrastructure and help in onboarding major private-sector infrastructure players. Going forward, the PLI and new-age sectors (such as green hydrogen, semiconductors, wearables and solar modules) are expected to account for significant capex in the coming years. 7. While growth prospects have been strong, and domestic economic activity is maintaining resilience with a healthy balance sheet of the private se

FAQs

What does the statement emphasize at the beginning of the session?

It expresses deep condolences to victims’ families of the earthquake and floods in Morocco and Libya and underscores India’s solidarity with recovery efforts.

What global economic challenges are discussed for growth and stability?

The statement points to supply chain disruptions, labor market shifts, high interest rates, inflation pressures, currency depreciation, banking vulnerabilities, slower growth in many economies, rising debt burdens, and socio-economic disparities.

Which India-focused economic areas does the statement cover?

It addresses growth forecasts, government capital expenditure and investment incentives, inflation and the RBI’s policy-rate stance, export and trade dynamics, foreign exchange reserves, and progress on multidimensional poverty reduction.

Jul 19, 2026

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