IFC, India's Business Leaders Collaborate on Change
October 2, 2013 -- “Never let a crisis go without seeking change” IFC, Indian business leaders agree.
These were IFC VP for Treasury and Syndications Jingdong Hua’s words while discussing India’s economic revival with a group of eminent Indian economists, policy makers and private sector leaders at an IFC-hosted CEO Roundtable in New Delhi. Slowing economic growth has been the topmost concern for the private sector in recent months even as core fundamentals of the Indian economy remain strong.
Hua was joined by IFC VP and General Counsel Ethiopis Tafara, World Bank Country Director Onno Ruhl, IFC South Asia Regional Director Serge Devieux and IFC Treasury Director Monish Mahurkar, among others.
WB-IFC Strategic Interventions
To achieve its true economic potential, an emerging market needs to invest in vibrant, deep, liquid, open local currency capital markets, pointed out Ethiopis Tafara, on his first visit to India since his IFC appointment. That will help build a robust private sector.
“Private sector grows on two legs: entrepreneurship in an enabling environment and access to finance,” added Hua.
The group felt that joint IFC and WB action can contribute to an economic revival while balancing financial goals with a sustainable, inclusive approach. They concluded that some of the immediate opportunities included:
- mobilizing additional funds (eg: savings/ pension funds) for private investments, especially large infrastructure projects.
- making PPPs in infrastructure work
- liberalizing the banking sector
- stimulating a conducive environment for entrepreneurship
IFC has taken these ideas on board and will identify and develop proposals going forward.
As part of their two-day visit to India, Tafara and Hua met with Indian government officials and clients including Green Infra, a local company that is developing several renewable energy projects, especially in India’s low-income states; and Petronet LNG, a state-owned company that builds and operates liquefied natural gas terminals across India.
Earlier, while meeting staff, Tafara and Hua spoke about having the confidence of being part of an institution that is one of a kind, is the one and only advocate of private sector globally. They encouraged staff to come together,think big, identify projects where we can play a breakthrough role, take and manage risks and the necessary Management support will come their way.