India Keen to Work with IMF on Domestic Resource Mobilisation: FM Sitharaman

Finance Minister Nirmala Sitharaman, on Wednesday, articulated India's eagerness to collaborate with the International Monetary Fund (IMF) to assist developing countries in promoting domestic resource mobilisation. This initiative aligns with the endorsement made by G20 leaders last month. The G20 New Delhi Leaders’ Declaration had called upon IMF and the World Bank, along with other pertinent international institutions, to bolster efforts aimed at enhancing domestic resource mobilisation in emerging market and developing economies (EMDEs).

Meeting With IMF Managing Director

Sitharaman met with Kristalina Georgieva, Managing Director of IMF on the sidelines of the Annual Meetings of IMF-WB in Marrakech, Morocco. During this meeting, she expressed her gratitude towards IMF for its support during the G20 India Presidency. This included their assistance related to Digital Public Infrastructure (DPI) work and advocacy for tech-driven economic growth and productivity gains.

Sitharaman also acknowledged and appreciated the role played by IMF concerning policy work for crypto assets alongside a related G20 roadmap for global coordination within and beyond G20 nations. In addition to this, she conveyed India’s readiness to back IMF’s agenda in 2024 both within and beyond G20-related work.

G20 Finance Ministers Meeting & High-Level Dialogue

Apart from these discussions, a High-Level Dialogue on Capacity Building and Two-Pillar Solution was organised on the sidelines of 4th G20 Finance Ministers and Central Bank Governors (FMCBG) meeting. Revenue Secretary Sanjay Malhotra chaired this event where he emphasised that intensive capacity-building initiatives are crucial for effective implementation of two-pillar international tax package.

The panel discussion included finance deputies from Indonesia, UK, UN as well as representatives from World Bank who shed light on potential impacts on developing countries of strategic responses. These include the adoption and design of optional provisions in the two-pillar package, usage of simplified approaches to safeguard corporate tax base, and redesigning investment tax incentives.

Manal Corwin from OECD discussed their plan to assist developing nations implement this two-pillar package. The event also featured interventions from finance deputies of Japan, African Union and EU Council along with remarks made by the Finance Deputy from Brazil, which is set to take over G20 Presidency next.

In conclusion, India's readiness to collaborate with international financial institutions like IMF reflects its commitment towards fostering economic growth not just domestically but also in other emerging economies. It underscores India’s leadership role in global financial forums like G20 and its dedication towards tech-driven economic growth and digital infrastructure development. As we move forward into 2024 and beyond, it will be interesting to see how these collaborations unfold and contribute towards a more inclusive global economy.