World Bank President Ajay Banga Meets PM Modi Amid India-Pakistan Tensions

As tensions between India and Pakistan escalated in early May 2025, the visit of World Bank President Ajay Banga to India drew significant attention both domestically and internationally. While the backdrop was marked by India’s suspension of the Indus Waters Treaty and military operations following the Pahalgam terror attack, Banga’s visit remained firmly focused on India’s economic transformation and development, particularly in Uttar Pradesh.

Contents

Context: India-Pakistan Crisis and the Indus Waters Treaty The Purpose of the Visit: Showcasing India’s Economic Progress Key Highlights of the Visit Broader Impact: Endorsement of India’s Development Story Conclusion Sources

Context: India-Pakistan Crisis and the Indus Waters Treaty

The timing of Ajay Banga’s visit coincided with a period of heightened India-Pakistan hostilities. India had recently suspended the Indus Waters Treaty-a water-sharing agreement brokered by the World Bank in 1960-after a major terror attack in Jammu and Kashmir. This move, along with targeted Indian airstrikes on terror camps in Pakistan and Pakistan-occupied Kashmir, brought the World Bank’s historical role in regional diplomacy back into the spotlight.

Despite speculation about the World Bank’s possible intervention in the treaty dispute, Ajay Banga clarified that the institution’s role is limited to facilitation, not arbitration or enforcement, and that it would not interfere in the bilateral issue.

The Purpose of the Visit: Showcasing India’s Economic Progress

Ajay Banga’s visit to India was planned well before the recent escalation and was centered on witnessing and supporting the rapid development underway in Uttar Pradesh. The state, under Chief Minister Yogi Adityanath, has been positioning itself as the “growth engine of the nation” with an ambitious goal of becoming a $1 trillion economy.

Key Highlights of the Visit

Meetings in Lucknow: Banga participated in a series of meetings and roundtable discussions at Hotel Taj, engaging with state officials and stakeholders, including Chief Secretary Manoj Kumar Singh.
Discussion with Chief Minister: He met Chief Minister Yogi Adityanath at his residence for an in-depth discussion and dinner, focusing on investment, development, and partnership opportunities.
Site Visits: Banga visited the Take-Home Ration (THR) plant in Chinhat Block to review operations and learn about nutrition initiatives. He also toured a beekeeping center in Rajouli, Barabanki, where he interacted with women self-help groups, highlighting grassroots empowerment and rural development.
Focus on Transformation: The World Bank chief’s itinerary was designed to witness firsthand the transformation in Uttar Pradesh, which has seen a surge in global institutional interest due to its economic reforms and progress in law and order.

Broader Impact: Endorsement of India’s Development Story

Banga’s visit also served as an endorsement of India’s recent strides in poverty reduction. According to a recent World Bank report, extreme poverty in India dropped from 16.2% in 2011-12 to 2.3% in 2022-23, with rural and urban poverty rates declining significantly. This progress is seen as validation of India’s development policies and its efforts to bridge the rural-urban divide.

Conclusion

While global headlines were dominated by the India-Pakistan conflict and the suspension of the Indus Waters Treaty, World Bank President Ajay Banga’s visit to India remained focused on economic development, investment, and social progress. His engagements in Uttar Pradesh underscored the state’s transformation and the growing interest of international institutions in partnering with India’s growth journey. The World Bank’s stance on non-interference in the Indus dispute further clarified its commitment to supporting development rather than mediating geopolitical tensions.