India keen to engage with IMF to purse G20 agenda on resource mobilisation

Finance Minister Nirmala Sitharaman on Wednesday expressed India's keenness to engage with IMF to work with developing countries in facilitating domestic resource mobilisation as endorsed by G20 leaders.

Last month, G20 New Delhi Leaders' Declaration urged IMF and the World Bank, in coordination with other relevant international institutions, to support efforts at enhancing domestic resource mobilisation in emerging market and developing economies (EMDEs).

During the meeting with International Monetary Fund (IMF) managing director Kristalina Georgieva on the sidelines of the Annual Meetings of IMF-WB, in Marrakech, Morocco, Sitharaman thanked IMF for support during the G20 India Presidency, including Digital Public Infrastructure (DPI) related work and promotion for tech-driven economic growth and productivity gains.

She also appreciated IMF's role with regard to policy work for crypto assets and the related G20 roadmap for global coordination within and beyond G20 countries, the finance ministry said in a statement.

Sitharaman also conveyed India's readiness to support IMF's agenda in 2024 within and beyond G20-related work.

On the sidelines of 4th G20 Finance Ministers and Central Bank Governors (FMCBG) meeting, a High-Level Dialogue on Capacity Building and the Two-Pillar Solution was organised.

The meeting discussed the broad agenda for capacity building in relation to the two-pillar international tax package.

Revenue Secretary Sanjay Malhotra chaired the event and stressed that intensive capacity-building initiatives are imperative for effective implementation of the two-pillar international tax package.

The panel, comprising the Finance Deputies from Indonesia, the UK, UN, and World Bank, highlighted the feasibility and potential impact on developing countries of strategic responses, such as the adoption and design of optional provisions in the two-pillar package, the use of simplified approaches to protect the corporate tax base, and redesign of investment tax incentives.

Apart from interventions from the Finance Deputies of Japan, African Union and EU Council, Manal Corwin from OECD discussed the OECD's plan to help developing countries implement the two-pillar package.

During the event, it said, remarks were also made by the Finance Deputy from the succeeding G20 Presidency, Brazil.