Finance Minister Nirmala Sitharaman has called on the World Bank Group to focus on mobilising private capital to create jobs, offer competitive financing and give developing countries a stronger voice in its governance. She was speaking as India’s Governor of the World Bank at the 114th meeting of the Development Committee Plenary in Bangkok, Thailand, on October 15, 2026. The meeting’s theme was “Private Capital Mobilisation and Jobs.”
“We welcome the continued focus on mobilising private capital and creating jobs. At a time of growing energy market stress, trade fragmentation, climate pressures, and rapid technological change, productive and better-paid jobs remain the most effective pathway to poverty reduction and shared prosperity.”
Nirmala Sitharaman, Union Finance Minister
Six priorities for the World Bank Group
Sitharaman set out six priorities for the World Bank Group:
- Building an enabling ecosystem for jobs
- Keeping the private sector at the centre of the development agenda
- Ensuring affordable financing
- Addressing market failures
- Reviewing governance indicators
- Strengthening the voice of developing countries
She said sustainable job creation needs high-quality, inclusive growth, supported by macroeconomic stability, efficient infrastructure, simple and predictable regulations, and broad access to finance and skills. India’s experience, she said, shows that last-mile connectivity, large-scale physical and digital public infrastructure, financial inclusion and regulatory trust in market forces are critical to creating jobs at scale.
Private enterprise and financing
“The private sector must remain at the centre of the development agenda. Most jobs will be and should be created by private enterprises MSMEs, and startups will play a big role. Mobilising private investment is therefore essential.”
Nirmala Sitharaman (as reported by IANS)
Sitharaman said success should be measured by the jobs created and productivity gains, not by the volume of financing mobilised. She called for stronger collaboration between the International Bank for Reconstruction and Development (IBRD), the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA), and faster rollout of the World Bank Group Guarantee Platform. Developing economies face a shortage of risk capital, she said, and guarantees and risk-mitigation tools are among the most effective ways to attract private investment.
She also said the World Bank should remain a development partner through competitive pricing, local currency financing, stronger guarantee products and lower transaction costs.
Market failures, AI and governance indicators
Sitharaman said the Bank’s knowledge work should target market failures in urbanisation, tourism, agricultural exports and critical minerals, and called for more attention to using artificial intelligence to strengthen state capacity in developing countries. She also sought a comprehensive review of the Worldwide Governance Indicators and similar composite assessments, so that their methodologies are transparent, objective and evidence-based.
“The ultimate measure of success is whether reforms help countries create jobs, raise productivity, reduce poverty, and improve living standards.”
Nirmala Sitharaman
