NEW DELHI: The World Bank Group announced that it has helped India in mobilising a total of USD 36 billion over the past four years for development in various sectors, aiming to enhance investment and generate employment.
Out of the overall amount, USD 9.6 billion was directed towards micro, small, and medium enterprises (MSMEs) to promote growth driven by the private sector and generate jobs.
Mobilising private capital entails securing investments from private investors to support development initiatives and enhance public financing.
According to Manuel Reyes-Retana, Division Director, South Asia, IFC, a member of the World Bank Group, private capital mobilisation by the World Bank Group has increased almost five times over four years, growing from about USD 3 billion in FY22 to USD 14.5 billion in FY26 and facilitating a total of USD 36 billion for development across various sectors.
“We’re observing encouraging reactions from private sector investors and increasing momentum in this field. Investors globally, including those in India, are progressively seeking to diversify their assets and investment instruments,” he informed.
The assurances offered by International Finance Corporation (IFC) and Multilateral Investment Guarantee Agency (MIGA) are positively regarded by the investor community, he noted.
“These guarantees are valued by institutional investors due to their familiarity with the governance practices and underwriting standards of the World Bank Group. Consequently, institutional investors are increasingly pursuing these assets,” he stated.
The World Bank Group serves as a link between governmental development goals and private sector investment by enhancing markets, creating feasible projects, and minimising risks via funding, guarantees, and collaborations, he stated.
Through the USD 436-million Raising and Accelerating MSME Performance (RAMP) initiative, the World Bank backed reforms concerning Trade Receivables Discounting System (TReDS), a digital platform allowing businesses to turn unpaid invoices into cash.
The initiative has allowed over 2.5 lakh MSMEs to access capital more quickly, and 30 non-banking financial companies have become part of the platform, thereby increasing the lender pool.
According to the World Bank Group, credit guarantees for businesses owned by women have risen from 14 per cent to 18 per cent in two years, generating over USD 1 billion.
The inaugural Green MSME Guarantee Fund in India has supported more than 4,000 MSMEs, facilitating investments of USD 40 million in green and circular-economy initiatives, it stated.
The investments form a key aspect of the World Bank Group’s collaboration with India to help fulfil its goal of evolving into an upper-middle-income economy within the next ten years and realising the Viksit Bharat vision by 2047.
