Latest news with #DevelopmentCommittee
Indian Express
05-05-2025
- Business
- Indian Express
‘For poor, populous states like Bihar, MSMEs key to job creation': N K Singh
In a recent report of its Development Committee, the World Bank laid out the global challenge of job creation, particularly in the developing world. Noting that 1.2 billion young people will reach working age in developing countries, the report said these economies may not be able to generate enough jobs for even 300 million. In an interview with The Indian Express, former Finance Commission chairman N K Singh said for India to bridge this employment gap, Micro, Small and Medium Enterprises (MSMEs) are crucial. Singh, a BJP member and former JD(U) Rajya Sabha MP, spoke about India's efforts to boost MSMEs, the challenges faced by the sector, and how poll-bound Bihar in particular could benefit from an MSME-centric model. Excerpts: * How do you view the World Bank jobs report? In the Indian context, I feel jobs and MSMEs are central to many of our quests – for adoption of technology, for increasing the use of digital stack on which we have developed a mastery, for harmonising the adoption of high technology with high-quality jobs, and to really integrate the very large informal, unorganised sector. We have roughly 63 million MSMEs – 99% of that is micro. (On April 1, the Centre revised the micro classification, which now involves an investment cap of Rs 2.5 crore and turnover cap of Rs 10 crore)… The bulk of these micro enterprises are in the informal sector and their formalisation is one of the big challenges. Currently, micro enterprises employ at least 150 million people, which is 40% of our labour force, and constitute 30% of India's GDP and 45% of our exports. So it is a very significant part of the economy. * What are some of the challenges facing MSMEs? The definition and the challenges of MSMEs have kept evolving… A Reserve Bank of India committee identified the credit gap for meeting the needs of this sector at Rs 25 lakh crore. Only 14% of India's MSMEs have access to formal credit – in China, it is 37%, and in the US, it is 50%. So part of the problem arises over whether you would give credit in an unsecured way. The Union Finance Ministry has taken a number of initiatives, including that up to Rs 10 lakh can be unsecured loans. MSMEs are an important focus both for Prime Minister Narendra Modi and the Finance Minister. There are, of course, several other issues. One is to have much greater registration on online portals. The other is the inclusion of higher benefits through unsecured loans, through revamping of the credit line guarantee scheme, (and) access to digital technology becoming mainstreamed in the procurement policies of the government. Another major factor here is the compliance culture. The PM's own concern was a committee under the Cabinet Secretary which will look into the issues of simplifying compliance – what may be called 'deregulating' government… MSMEs are hardly in a position to be burdened with the whole framework of intricate and complex regulation. Then, of course, the usual issues of infrastructure and marketing access. Forget about the global value-added chain, how do you integrate MSMEs with the Indian value-added chain, and tap the huge potential they have via exports? Compared to global averages of women's participation at an average of 23%, India's is much lower. So how do we get more women involved in the MSME programme?… How do we substantially improve the number of women entrepreneurs? * What is India doing to address these challenges? Some labour-intensive industries – toys, textiles, garments – can create millions of jobs… Among the best international examples is Kenya's M-Pesa, a mobile-phone based payments and micro-financing portal. Our technology stack – the Jan-Dhan (Yojana), Aadhaar and mobile trinity – is a very credible response. On the credit guarantee scheme (too), we have done very significantly, as well as with the Skill India Mission… We have the National Skill Development Corporation (NSDC) and a cluster-based employment drive, but we can significantly improve on that. For instance, Vietnam is a great example of building clusters… Hosiery is a very important cluster in Tamil Nadu 's Tiruppur, there are auto parts clusters in Punjab. When it comes to some of these initiatives, not only do we have to learn, but the world has a lot to learn from us. In terms of financing, I think the world perhaps has taught us much more. For instance, the South African example of blended finance – we have introduced it but we can do so much more in conjunction with the private sector. The World Bank report focusing on jobs is an area where we have done a lot but as we look to provide gainful employment, the MSME sector is a very important sector… particularly in respect of some very endemically poor and populous states, one of which is Bihar, where I come from. * Would an MSME-centric model work in Bihar? Bihar now has about 125 million people. Per capita income is only Rs 59,000. Poverty numbers are 33%, compared to a national average of 14%. Unemployment rate is 17%, far in excess of the national average. And it has huge migratory pressures. So Bihar has a great deal to benefit from MSMEs. As the (Assembly) elections approach, the issues of Bihar's developmental deficit, and how to overcome them would attract focus… * What sectors should an MSME-led model focus on in Bihar? One is a cluster-based approach where Bihar has a comparative advantage in terms of a fairly talented human resource. Second is harnessing the great latent potential of Bihar entrepreneurs, particularly women. To saturate the total credit needs and upgrade skills, the cluster-based approach would be best utilised in the tourism and service sectors, small and medium industries, along with better integration with large industries. New efforts have been made to develop Bihar's latent tourism potential through the Buddhist and other tourist circuits. North Bihar is full of these, what may be called 'soft power' hubs… The fact that the Finance Minister (Nirmala Sitharaman) for her Budget speech decided to wear a Madhubani saree shows the enormous artistic and cultural talent of Mithila and Bihar… People tend to forget that Tussar silk was a global quest before the colonial period destroyed the silk industry in Bhagalpur… A recent big announcement was the Makhana Board. Who would have realised that the makhana has this huge potential? This is only one example. * There is, however, a huge demand in Bihar for government jobs. Several initiatives can be undertaken. One is the initiative of effectively harnessing technology for upgrading education and educational pedagogy. A focus on its health parameters will in turn lead to better education for girls, which will further have a dramatic impact on Bihar's own GDP and per capita income as more women join the labour force. All of which would also bring down the migratory pressures from Bihar… These initiatives have commenced and hopefully will be deepened. * How do you view the performance of the JD(U)-BJP government in Bihar? I really believe it's best designed to suit Bihar's developmental needs.. Bihar needs a continuation of this constellation of policies, deepening this process further by continuing with a government that is stable, that guarantees security of life and property… That this government focuses on development and not identity politics, I think is the path forward… There is a very famous phrase that would be very applicable for Bihar – guaranteeing what is known as a 'peace dividend'. Parties that are designed to give a peace dividend are also likely to be better placed to give development. The current leadership of the BJP and Nitish Kumar is well designed for this.
See - Sada Elbalad
03-05-2025
- Business
- See - Sada Elbalad
Al-Mashat Comments on Outcomes of Development Committee Held during Spring Meetings of IMF & WB
Rana Atef Dr. Rania A. Al-Mashat, Minister of Planning, Economic Development and International Cooperation and Egypt's Governor at the World Bank, affirmed that the Ministry is working in coordination with various ministries to prepare an executive plan aimed at supporting growth and employment rates. This plan focuses on several key sectors, including foreign direct investment, industrial development and trade, labor markets and employment, in addition to enhancing macroeconomic stability and supporting economic policies in collaboration with the World Bank Group as a knowledge partner. These remarks came following Dr. Al-Mashat's participation in the Development Committee meetings. The committee was chaired by Mr. Ajay Banga, President of the World Bank Group, and attended by Ms. Kristalina Georgieva, Managing Director of the International Monetary Fund. The committee is one of the most prominent forums that brings together the Governors of the World Bank to discuss development and international financing issues. Dr. Al-Mashat added that Egypt places private sector empowerment at the forefront of its priorities within the framework of economic and structural reform. The private sector is considered a key driver of development efforts and employment creation. She outlined several vital sectors in this context, including tourism — which provides millions of job opportunities — as well as industry, particularly non-oil value-added manufacturing, and agribusiness. Minister Al-Mashat also pointed to efforts by the ministry to enhance its partnership with the World Bank by leveraging the Joint Capital Markets Program (J-CAP) to support local capital markets, in cooperation with the International Finance Corporation (IFC). She noted several ongoing programs with international financial institutions, in partnership with the Micro, Small, and Medium Enterprises Development Agency (MSMEDA), aimed at supporting and growing this sector and increasing financing opportunities for various companies. The Development Committee's conclusions emphasized that the World Bank Group's strategic direction is to create jobs by encouraging entrepreneurship and fostering private sector development. It stressed the necessity for a three-pronged approach to support private sector development and job creation: establishing employment-supportive infrastructure, strengthening governance and business-enabling policies in collaboration with governments, and stimulating the mobilization of private capital. The World Bank considers accelerating job creation a top priority. The committee also highlighted the importance of enabling the private sector to create more jobs by improving supportive policies and establishing a stable regulatory environment that allows the sector to operate efficiently. It emphasized investment in human capital through proper nutrition, healthcare, education, and skills development, along with mobilizing private capital to create more and better-quality jobs. Special attention was also given to developing micro, small, and medium-sized enterprises (MSMEs), which represent about 90% of all companies and employ nearly 75% of the workforce in emerging markets and developing economies. The committee's conclusions also underscored the importance of private sector financing and the need to expand the scope of the Joint Capital Markets Program (J-CAP), which is the World Bank's main tool to support local capital markets, by intensifying its activities and broadening its engagements. read more CBE: Deposits in Local Currency Hit EGP 5.25 Trillion Morocco Plans to Spend $1 Billion to Mitigate Drought Effect Gov't Approves Final Version of State Ownership Policy Document Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister Qatar Agrees to Supply Germany with LNG for 15 Years Business Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves Business Suez Canal Records $704 Million, Historically Highest Monthly Revenue Business Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday Business Wheat delivery season commences on April 15 News Egypt confirms denial of airspace access to US B-52 bombers News Ayat Khaddoura's Final Video Captures Bombardment of Beit Lahia Lifestyle Pistachio and Raspberry Cheesecake Domes Recipe News Australia Fines Telegram $600,000 Over Terrorism, Child Abuse Content Arts & Culture Nicole Kidman and Keith Urban's $4.7M LA Home Burglarized Videos & Features Bouchra Dahlab Crowned Miss Arab World 2025 .. Reem Ganzoury Wins Miss Arab Africa Title (VIDEO) Sports Former Al Zamalek Player Ibrahim Shika Passes away after Long Battle with Cancer Sports Neymar Announced for Brazil's Preliminary List for 2026 FIFA World Cup Qualifiers News Prime Minister Moustafa Madbouly Inaugurates Two Indian Companies Arts & Culture New Archaeological Discovery from 26th Dynasty Uncovered in Karnak Temple
Time of India
27-04-2025
- Business
- Time of India
World Bank eyes energy financing options, holds fast on equality issues
The World Bank 's steering committee on Friday endorsed the lender's plans to explore options to expand energy access, including potential financing for nuclear energy, in a move in line with directives to broaden energy financing by US President Donald Trump's administration. But the group's statement also endorsed the development lender's gender and equality strategy, just days after US Treasury Secretary Scott Bessent on Wednesday said the World Bank and the International Monetary Fund had suffered from 'mission creep' straying too far from their core development and economic stability mandates into climate change, gender and inclusion issues. A statement from the World Bank and International Monetary Fund joint Development Committee called on the World Bank Group (WBG) to work towards providing energy access to 300 million Africans by 2030. 'We encourage the WBG to explore further options for increased affordable and reliable energy access, including potential support for nuclear energy,' the Development Committee said. Bessent urged the World Bank to focus on energy affordability rather than seeking to 'meet distortionary climate financing targets.' He welcomed the lender's plan to end a prohibition on the bank's nuclear energy financing and urged it to support gas and other fossil-fuel-based energy production. The Development Committee noted the bank's target to devote 45 per cent of its lending to climate activities by fiscal year 2026, but said that this should respond to 'client requests for mitigation support including access to electricity, effective and resilient transportation solutions, biodiversity, sustainable food production and climate adaptation projects.' Taking a stand The panel's statement fully endorsed the World Bank Group's gender strategy and called for further efforts to promote equality. 'We commend the WBG for its programs that expand economic opportunities for women entrepreneurs, including its work to provide 80 million more women and women-led businesses with capital, and elevate human capital for women and girls,' the statement said. German Development Minister Svenja Schulze told reporters she pressed for inclusion of critical issues such as women's rights and climate during the Development Committee's discussions. 'I insist on mentioning women's rights and empowerment and climate change concerns, even if the US is pressuring the bank to retreat from those goals,' Schulze said, adding that EU members make up 23 per cent of the bank's shareholdings, with the US, the largest single shareholder, at 16 per cent. 'We set a course for the bank over the past two years, and we must stick to it,' Schulze said. Participants noted that the United States did not speak first during the Development Committee meeting as it has traditionally done, and there was little support for its views, except from Russia. One participant, who asked not to be identified, said the US stance toward the World Bank was surprising after decades of strong support, noting that it remained unclear if Washington would make good on its pledge to provide $4 billion for the International Development Association , the bank's fund for the World's poorest countries. Bessent said that a decision whether to proceed with the pledge, made by former President Joe Biden, would depend on US budget deliberations and implementation of reforms to the World Bank.
Reuters
25-04-2025
- Business
- Reuters
World Bank energy financing expansion endorsed by development committee
WASHINGTON, April 25 (Reuters) - The World Bank's steering committee on Friday endorsed the lender's plans to explore options to expand energy access, including potential financing for nuclear energy, in a move in line with directives to broaden energy financing by U.S. President Donald Trump's administration. A statement from the World Bank and International Monetary Fund joint Development Committee called on the World Bank Group (WBG) to work towards providing energy access to 300 million Africans by 2030. The Reuters Power Up newsletter provides everything you need to know about the global energy industry. Sign up here. "We encourage the WBG to explore further options for increased affordable and reliable energy access, including potential support for nuclear energy," the Development Committee said.
Daily News Egypt
21-04-2025
- Business
- Daily News Egypt
Egypt's Al-Mashat attends WB/IMF Spring Meetings in Washington
Egypt's Minister of Planning, Economic Development and International Cooperation, Rania Al-Mashat, has arrived in Washington D.C. to participate in the 2025 Spring Meetings of the World Bank Group and the International Monetary Fund (IMF), the ministry announced on Monday. The meetings, taking place throughout this week under the theme 'Jobs… The Path to Prosperity,' bring together central bank governors, finance and development ministers, parliamentarians, senior private sector officials, civil society representatives and academics. Discussions will focus on global economic prospects, poverty reduction, driving economic development, and the effectiveness of development cooperation. Al-Mashat, who also serves as Egypt's Governor at the World Bank Group, is scheduled to participate in several high-level sessions. These include the Intergovernmental Group of Twenty-Four (G24) on International Monetary Affairs and Development, the Development Committee meetings, and the African Governors Constituency meeting at the World Bank Group. The minister will hold intensive bilateral meetings with senior management of the World Bank Group. These discussions will follow up on the ongoing partnership portfolio and address efforts to drive growth, employment, and achieve sustainable economic development in Egypt. Al-Mashat is also set to hold meetings with representatives of other governments as well as multilateral and bilateral development partners. Furthermore, she will participate in high-level events examining current global economic challenges and the future of development in developing countries and emerging economies. Participation in events organised by the World Economic Forum (WEF) is also scheduled, reflecting the relationship between the forum and the Egyptian government. Egypt has previously announced its support for contributing to the 21st replenishment of the International Development Association (IDA). The IDA, a World Bank Group institution, is one of the largest bodies working to combat extreme poverty in the lowest-income countries. The World Bank Group is conducting ongoing discussions with contributing countries and relevant stakeholders regarding this replenishment process. The 2025 Spring Meetings occur amid significant global economic developments. Factors influencing the discussions include U.S. tariffs imposed on numerous trading partners and their subsequent impact on growth and inflation in various countries, as well as the economic consequences of geopolitical tensions affecting multiple regions worldwide. The annual Spring Meetings encompass sessions of the Development Committee, the International Monetary and Financial Committee (IMFC), the G24, and the G20, among other gatherings.
