India’s Exports Shined in FY24 (till July), Especially in Services Sector; says FM Nirmala Sitharaman at World Bank’s Development Committee Plenary Meeting

Indias Exports Shined in FY24 - Especially in Services Sector - FM Nirmala Sitharaman at World Banks Development Committee Plenary Meeting - TAXSCAN

Union Finance Minister, Smt. Nirmala Sitharaman, serving as the World Bank Governor, participated in the 108th Meeting of the Development Committee Plenary in Marrakech, Morocco. The meeting’s focus was “Ending Poverty on a Liveable Planet – Report to Governors on World Bank Evolution.”

The Union Minister began her address by expressing heartfelt condolences to the families affected by the recent earthquakes and floods in Morocco and Libya. She conveyed India’s solidarity with the people and authorities of these nations as they strive to recover from the disastrous consequences of these natural disasters.

The Minister in her statement mentioned that “Amidst the weak global growth outlook, India’s exports performed well during the current financial year (FY24 till July 23), mainly led by the services export growth.”

Further added that “Despite global headwinds, on account of stronger-than-expected growth in the fourth quarter of FY23 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 percent, raising the share of capital expenditure in total expenditure from 12.3 per cent in FY18 to 22.4 per cent in FY24.”

During her remarks on the agenda, the Union Finance Minister lauded the progress made by G20 countries toward the common goal of enhancing the World Bank’s effectiveness. She emphasised the World Bank’s role as a template for the entire Multilateral Development Bank (MDB) ecosystem, highlighting its new vision to eliminate poverty and boost shared prosperity while addressing global challenges.

The FM urged the World Bank to harmonise its processes and procedures with those of other MDBs, a move that would greatly benefit countries dealing with multiple development banks.

She underscored the importance of aligning the augmented World Bank Group’s country engagement model with national development priorities. Additionally, she encouraged the institution to take a more ambitious stance in its commitment to adaptation finance, emphasizing the principle of “common but differentiated responsibilities and respective capabilities” in climate action.

The Finance Minister recognized the need for a unified approach to mobilise private capital at scale, acknowledging the challenging global economic outlook. She noted that the success of proposed pilot Global Challenge Programs (GCPs) would depend on strong country demand, ownership, and access to both new and concessional finance for Low-Income and Middle-Income Countries.

FM concurred with the conclusion that more resources should be mobilised for the World Bank, especially through IDA replenishment for the poorest countries and general capital increases for IBRD, in order to better serve clients. She also spoke about the evolution of the World Bank Group.

While concluding, the Union Finance Minister emphasised the need for a transformational approach to accelerate progress toward achieving the 2030 Sustainable Development Goals, echoing the spirit of “Vasudhaiva Kutumbakam” – One Earth, One Family, One Future, especially relevant in these challenging times.

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