World Bank's New Country Partnership Framework with India

The World Bank Group has pledged to provide India with $8-10 billion annually over the next five years. This commitment supports India's growth and job creation agenda under a new Country Partnership Framework, which exceeds the previous program's annual funding by $2-3 billion.

Key Objectives and Strategies

• Alignment with Viksit Bharat Vision: Finance Minister Nirmala Sitharaman emphasized that the framework aligns with the Viksit Bharat vision and focuses on leveraging public funds with private capital to create jobs and enrich projects with global knowledge.
• Private Sector-Led Job Creation: With approximately 12 million young people entering the labor market annually, unlocking private investment in job-rich sectors is prioritized.
• Partnership Approach: Collaboration aims to make the partnership more selective, scalable, and impact-driven. Emphasis on mobilizing private capital alongside public financing.

Focus Areas and Strategic Outcomes

• Investment Focus:
  • Physical and human infrastructure
  • Business-friendly regulatory environment
  • Risk-management tools for scaling private investment
• Priority Sectors:
  • Infrastructure and energy
  • Agribusiness, healthcare, tourism, and value-added manufacturing
• Four Strategic Outcomes:
  • Boost rural prosperity by diversifying incomes beyond agriculture
  • Support urban transformation given the projected doubling of the urban population by 2050
  • Invest in people across health, education, and skills
  • Strengthen energy security, core infrastructure, and climate resilience

Immediate Implementation and Key Projects

• Immediate implementation through ongoing and new projects.
• Examples of Key Projects: 
  • $830 million loan for upgrading industrial training institutes
  • $490 million project in Maharashtra for climate-resilient agriculture
  • $280 million Kerala program for strengthening digital health systems
  • $750 million initiative through Credila Financial Services for higher-education financing

World Bank Group's Support and Reforms

• Support for India's electric mobility transition via a programmatic approach.
• Reforms since 2023 for a more impactful partnership, many of which advanced during India's G20 presidency.
• India is the World Bank Group's largest client, with substantial financial commitments across various projects.
• Under the new framework, a larger share of lending will be used to attract private investment, leveraging the group's private sector instruments and global expertise.