India Keen to Engage with IMF for Domestic Resource Mobilisation: FM Sitharaman

India's Finance Minister, Nirmala Sitharaman, has recently communicated the country's eagerness to collaborate with the International Monetary Fund (IMF) to aid developing nations in enhancing domestic resource mobilisation. This initiative aligns with the objectives outlined by G20 leaders last month. The G20 New Delhi Leaders’ Declaration had urged international institutions like the IMF and World Bank to bolster efforts aimed at improving domestic resource mobilisation in emerging markets and developing economies (EMDEs).

In a meeting held on the sidelines of Annual Meetings of IMF-WB in Marrakech, Morocco, Sitharaman expressed her gratitude towards IMF for its support during India's G20 presidency. She particularly appreciated their contributions towards Digital Public Infrastructure (DPI) related work and promotion for tech-driven economic growth and productivity gains.

IMF & Crypto Assets

The minister also acknowledged IMF's significant role concerning policy work for crypto assets along with its associated roadmap for global coordination within and beyond G20 countries as stated by the finance ministry. Furthermore, she conveyed India’s readiness to back IMF’s agenda in 2024 within and beyond G20-related work.

G20 Finance Ministers & Central Bank Governors Meeting

A High-Level Dialogue on Capacity Building and Two-Pillar Solution was organized on the sidelines of the 4th G20 Finance Ministers and Central Bank Governors (FMCBG) meeting. The broad agenda regarding capacity building relative to this two-pillar international tax package was discussed.

The event was chaired by Revenue Secretary Sanjay Malhotra who emphasized that intensive capacity-building initiatives are crucial for effectively implementing this two-pillar international tax package.

Panel Discussions

A panel consisting of Finance Deputies from Indonesia, UK, UN, World Bank deliberated over strategic responses' feasibility and potential impact on developing countries. These strategic responses included the adoption and design of optional provisions in the two-pillar package, simplified approaches to protect corporate tax base, and investment tax incentives' redesign.

Contributions were also made by Finance Deputies from Japan, African Union, EU Council during this event. Manal Corwin from OECD discussed their plan to assist developing nations in implementing the two-pillar package. Notably, remarks were also made by the Finance Deputy from Brazil - the succeeding G20 Presidency.

In conclusion, these discussions signify India's commitment towards supporting international efforts aimed at enhancing domestic resource mobilisation in EMDEs. By showing readiness to back IMF’s future agenda and expressing gratitude for its past support, India is solidifying its position as a key player in global economic affairs. The emphasis on capacity building initiatives for effective implementation of international tax packages further underlines India's dedication towards fostering sustainable economic growth globally.