World Bank Governor's Statement No. 9 - October 17, 2025 - Statement by Anuradha Thakur, Alternate Governor for India

Jul 19, 2026

World Bank Governor’s Statement No. 9 dated October 17, 2025, delivers Anuradha Thakur’s remarks as Alternate Governor of the IBRD for India. It extends condolences for last year’s natural disasters, reviews global economic headwinds, and highlights India’s resilience and growth outlook. The statement emphasizes fiscal prudence, inflation trends, and inclusive poverty reduction, alongside major Income Tax and GST reforms. It also calls for a more inclusive multilateral financial architecture, stronger MDB reforms, and accelerated IMF quota and PRGT contributions. It stresses predictable debt restructuring frameworks, transparency, technical assistance, and capacity building to ease debt distress.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages4

Reading Time10 min

Governor's Statement

Condolences and global context

India’s growth, fiscal stance, and inclusion

Tax and GST reforms

Multilateral reforms and funding priorities

IMF quota and PRGT contributions

Debt vulnerabilities and restructuring

Public Disclosure Authorized Public Disclosure Authorized World Bank Governor's Statement No. 9 October 17, 2025 Statement by the Hon. ANURADHA THAKUR, Alternate Governor of the IBRD for INDIA Statement by the Hon. Anuradha Thakur, Alternate Governor of the IBRD for India 1. I extend my heartfelt condolences to the families and communities impacted by the devastating natural disasters worldwide last year. India stands in solidarity with the peoples and governments of these nations as they navigate the difficult path of recovery and rebuilding. 2. We meet at a time when the global economy continues to navigate multiple and overlapping challenges-geopolitical uncertainties, trade tensions, slowing growth, rising debt distress, and intensifying climate shocks. These challenges are further compounded for developing countries due to limited fiscal space and uneven access to affordable finance. The way forward is to implement consistent and forward-looking policies that foster trust and drive sustainable economic progress. 3. While global growth is expected to moderate in both 2025 and 2026 from its level in 2024, the Indian economy has shown resilience. India’s National Statistical Office has placed the June quarter estimate of real GDP growth for 2025-26 at a robust 7.8 percent. India is experiencing the fastest growth among the world's largest economies. RBI projects 6.8 percent real GDP growth for 2025-26 , supported by a favorable monsoon, buoyancy in the services sector, and rationalization of GST. Sovereign credit rating agencies like Fitch have raised it to 6.9 percent for 2025. Further, two rating agencies , Morningstar-DBRS and S&P Global, have upgraded the country rating, underscoring global confidence in India’s medium-term growth prospects amid prevailing global uncertainties. 4. India continues to demonstrate strong fiscal prudence and has maintained moderate inflation. Its external sector has also exhibited strength amidst global headwinds. By the middle of September 2025, our foreign exchange reserve reached above 700 billion USD. Inflation touched an eight-year low of 1.6 percent in July 2025 before rising marginally to 2.07 percent in August 2025. 5. We believe in inclusive growth. Over the last decade, Millions have been lifted out of extreme poverty. The World Bank's latest data shows that the share of people living on less than US$3 per day—the global threshold for extreme poverty—declined sharply from 27.12 percent in 2011–12 to just 5.25 percent in 2022–23. 6. India has recently undertaken major reforms in the Income Tax and Goods and Services Tax. The changes in the Income Tax Act simplify tax slabs, enhance rebates, and streamline compliance to boost disposable income and investment. The GST reforms introduced in September 2025 simplify the structure to two principal rates, 5 percent and 18 percent, easing the tax burden on essential goods, healthcare, agriculture, and education, and reducing business compliance burdens. The higher tax rates only apply to luxury and sin goods to safeguard revenues. 7. India's G20 Presidency in 2023 set the tone for reforming the international financial architecture, asking multilateral financing institutions to be more inclusive, representative, and responsive to the Global South. In this context, I am happy to state that the Brazilian and South African Presidencies have carried forward the legacy of pushing up reforms in multilateral development banks (MDBs) to increase their lending for sustainable development, address high borrowing costs in developing economies, and strengthen the global sustainable finance architecture. 8. We note the World Bank's efforts in carrying forward the IEG recommendations through its Evolution Roadmap to make it a bigger, better, and more effective financing institution for faster implementation of development initiatives. However, the financing gaps are widening. So, while acknowledging the efforts of the World Ban

FAQs

What challenges does the statement cite in the global economy?

It points to overlapping pressures including geopolitical uncertainty, trade tensions, slowing growth, rising debt distress, and intensifying climate shocks, compounded by limited fiscal space and unequal access to affordable finance.

Which India-specific economic indicators and reforms are mentioned?

The statement highlights resilient growth with GDP estimates for 2025-26, moderate inflation, strong foreign exchange reserves, and major reforms in Income Tax and GST, including simplified tax slabs and two principal GST rates.

What is the statement’s main call regarding multilateral development banks and debt issues?

It calls for a more inclusive, representative, and responsive World Bank through stronger voice and voting for developing countries, risk-sharing mechanisms, and lower interest rates, while urging predictable debt restructuring and improved debt transparency alongside technical assistance.

Jul 19, 2026

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