World Bank Governor's Statement No. 10 - Statement by the Hon. Nirmala Sitharaman, Governor for India - October 25, 2024

Jul 19, 2026

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World Bank Governor’s Statement No. 10 dated October 25, 2024 presents India’s views through Governor Nirmala Sitharaman on global economic conditions, MDB reforms, and development priorities. It expresses condolences for natural calamities and notes broadly resilient global growth projections amid geopolitical and debt vulnerabilities. The statement highlights India’s strong GDP performance, calls for expanding MDB lending capacity and effectiveness, improving governance representation, and adopting flexible loan pricing for EMDE affordability. It also emphasizes governance and digital public infrastructure, data and technology for inclusive development, and the need for program design improvements.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages3

Reading Time8 min

Overview and condolences

Global and Indian economic outlook

MDB reforms and governance representation

Loan affordability, IMF PRGT/GRA considerations, and program design

Public Disclosure Authorized Public Disclosure Authorized World Bank Governor's Statement No. 10 October 25, 2024 Statement by the Hon. NIRMALA SITHARAMAN, Governor of the IBRD for INDIA Statement by the Hon. Nirmala Sitharaman, Governor of the IBRD for India 1. At the outset, I would like to express my deepest condolences to the families and communities affected by the recent devastating natural calamities worldwide including the floods and hurricanes in UAE, Oman, Brazil and the US. India stands in solidarity with the people and governments of these nations during these challenging times, as they embark on the long path of recovery and rebuilding. 2. The global economic environment remains broadly resilient despite multiple shocks, rising geopolitical tensions, and debt vulnerabilities which have posed significant challenges for global economic outlook. The global growth is projected to continue at the same pace in 2024 and 2025 according to the IMF’s World Economic Outlook. 3. The Indian economy remains robust and continues to grow strongly. National Statistical Office has placed the Q1 GDP growth for 2024-25 at 6.7% – the highest among large economies. On the supply side, gross value added (GVA) expanded by 6.8% surpassing GDP growth, aided by strong industrial and services sector activities. In 2024-25, the real GDP growth is expected at 7.2% and inflation at 4.5% . Sectors such as manufacturing, digital services, and renewable energy are seeing increased investment, helping India to diversify its economic base. 4. As the G20 Presidency in 2023, India had spearheaded critical discussions on MDB reforms which led to the report of the Independent Expert Group on strengthening multilateral development banks to address the shared global challenges of the 21st century has laid out a comprehensive vision for strengthened MDBs financing and operations. India has consistently advocated for reforms that ensure MDBs are fit for purpose to address contemporary challenges. These reforms must focus on expanding lending capacity, enhancing the effectiveness of MDB operations, and ensuring more equitable representation in decision-making structures. 5. As one of the founding members of the Bretton Woods institutions, India has played an important role in shaping the global economic order. India’s contributions to the creation ofthe IMF and World Bank have been part of a broader commitment to multilateralism and global governance. As the global economy evolves, it is essential that these institutions continue to reflect the changing landscape, providing a platform for all countries to engage in collective problem-solving. 6. India remains committed to governance reforms within both the IMF and the World Bank that enhance the representation and voice of developing countries, ensuring that these institutions are responsive to the needs of all members. 7. We believe that MDBs must continue to evolve, expanding their scope to provide not only financing but also technical assistance and capacity-building. India has supported the idea of MDBs becoming true knowledge banks, capable of disseminating global best practices, especially from the Global South, and innovative solutions to member countries. 8. In this context, ensuring the competitiveness and affordability of MDB loans is crucial. The rising cost of borrowing due to higher interest rates has disproportionately impacted EMDEs. While we recognize the need for financial prudence, we urge MDBs to balance financial sustainability with the developmental needs of their clients, particularly middle-income countries that face constraints in accessing concessional financing. India advocates for greater flexibility in loan pricing to ensure that MDB support remains accessible and more competitive, especially for countries pursuing ambitious development agendas. 9. We support use of internal resources of IMF as a one-time measure to preserve the self-sustained nature

FAQs

What issues does the statement address at the start?

It begins by expressing condolences to communities affected by floods and hurricanes and states India’s solidarity during recovery and rebuilding.

How does the statement characterize the global and Indian economic situation?

It says the global environment is broadly resilient despite shocks and that India’s economy remains robust, with projected real GDP growth and inflation targets for 2024-25.

What are the key reform priorities for multilateral development banks (MDBs)?

It calls for expanding lending capacity, improving MDB operation effectiveness, enhancing equitable representation in decision-making, and evolving MDBs to provide financing plus technical assistance and capacity-building.

Jul 19, 2026

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