The World Bank Group helped mobilise USD 36 billion in private capital since FY22 to support job creation in India. Manuel Reyes-Retana said, "We are seeing a positive response from private sector investors and growing momentum in this area." This funding helped many small businesses get faster access to capital.
Private capital mobilisation by the World Bank Group has grown nearly five-fold in four years, rising from approximately USD 3 billion in FY22 to USD 14.5 billion in FY26 and unlocking a cumulative USD 36 billion for development across sectors, Manuel Reyes-Retana, Division Director, South Asia, IFC, a member of the World Bank Group, said.
New Delhi: The World Bank Group said it has helped mobilise a cumulative USD 36 billion over the last four years for development across sectors and to support efforts to boost investment and create jobs.
Of the total, USD 9.6 billion was channelled towards micro, small and medium enterprises (MSMEs), as it seeks to boost private sector-led growth and job creation.
Private capital mobilisation involves attracting investment from private investors to finance development projects and supplement public funding.
Private capital mobilisation by the World Bank Group has grown nearly five-fold in four years, rising from approximately USD 3 billion in FY22 to USD 14.5 billion in FY26 and unlocking a cumulative USD 36 billion for development across sectors, Manuel Reyes-Retana, Division Director, South Asia, IFC, a member of the World Bank Group, said.
"We are seeing a positive response from private sector investors and growing momentum in this area. Investors across the world, including in India, are increasingly looking to diversify their investment instruments and assets," he told PTI.
The guarantees provided by the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA) are well received by the investor community, he added.
"Institutional investors value these guarantees because they are familiar with the World Bank Group's underwriting standards and governance practices. As a result, these assets are increasingly sought after by institutional investors," he said.
The World Bank Group acts as a bridge between government development priorities and private investment by strengthening markets, structuring viable projects and reducing risks through financing, guarantees and partnerships, he said.
Under the USD 436-million Raising and Accelerating MSME Performance (RAMP) programme, the World Bank supported reforms related to the Trade Receivables Discounting System (TReDS), a digital platform that enables businesses to convert unpaid invoices into cash.
The initiative has provided more than 2.5 lakh MSMEs with faster access to capital, while 30 non-banking financial companies have joined the platform, expanding the pool of lenders.
Credit guarantees for women-owned businesses have increased from 14 per cent to 18 per cent over two years, mobilising more than USD 1 billion, according to the World Bank Group.
India's first Green MSME Guarantee Fund has also benefited over 4,000 MSMEs, supporting USD 40 million in investments in green and circular-economy activities, it said.
The investments are part of the World Bank Group's partnership with India to support its ambition of becoming an upper-middle-income economy over the next decade and achieving the Viksit Bharat vision by 2047.
Under its Country Partnership Framework for FY2026-31, the World Bank Group is supporting job-rich, private sector-led growth, with a focus on inclusivity and sustainability.