Finance Minister Nirmala Sitharaman on Thursday said sustainable job creation requires high-quality, inclusive economic growth, supported by macroeconomic stability, efficient infrastructure, predictable regulations and broader access to finance and skills.
Speaking at the 114th Meeting of the Development Committee Plenary in Bangkok, Thailand, Sitharaman participated in her capacity as India’s Governor of the World Bank.
“Jobs require ecosystems, not isolated interventions,” she said, emphasising the need for an integrated approach to employment generation and economic development.
She also highlighted growing energy market stress, trade fragmentation, climate pressures and rapid technological change. Productive and better-paid jobs remain an effective pathway to poverty reduction and shared prosperity, she said.
Private sector crucial for sustainable job creation
Sitharaman said last-mile connectivity to energy and job markets, large-scale physical and digital public infrastructure, financial inclusion and trust in market-based regulation were essential for improving productivity and creating jobs at scale.
She stressed that the private sector must remain central to the development agenda, with micro, small and medium enterprises (MSMEs) and startups playing a significant role in employment generation.
“Mobilising private investment is therefore essential,” she said, adding that success should be measured by employment outcomes and productivity gains rather than the volume of financing mobilised.
The Finance Minister also called for competitive financing to remain a priority for the World Bank Group.
She said the institution should support development through competitive pricing, local currency financing, stronger guarantee products and lower transaction costs.
Affordable, predictable and accessible financing must remain central to the World Bank’s middle-income strategy, she added.
World Bank urged to address market failures
Sitharaman said the World Bank’s knowledge resources should help address market failures in areas such as urbanisation, tourism, agricultural exports and critical minerals.
She also called for greater attention to artificial intelligence in the institution’s operational and knowledge agenda, citing its potential to strengthen state capacity in developing countries.
The Finance Minister reiterated India’s concerns regarding the Worldwide Governance Indicators and similar composite assessments.
She called for a comprehensive review of existing methodologies to ensure they remain transparent, objective and evidence-based, while reflecting current realities and the diverse development experiences of member countries.
Sitharaman calls for stronger representation of developing countries
Sitharaman said reforms at the World Bank should ultimately help countries create jobs, raise productivity, reduce poverty and improve living standards.
She also emphasised the importance of strengthening the voice and representation of developing countries within the institution’s governance structure.
Her remarks underscored the need to assess development initiatives by their impact on employment, productivity and living standards, alongside the financing they generate.
