World Bank to double India investments to $10B by 2030
What's the story
International Finance Corporation (IFC), private sector arm of the World Bank Group, aims to double annual investments in India to $10 billion by 2030. The move is part of a broader strategy to deepen engagement with Indian states and support key sectors like urbanization, green energy, and micro, small, and medium enterprises (MSMEs). "An economy of this size, growing at this speed, requires us to increase both our ambition and commitment," IFC's Managing Director Makhtar Diop told The Economic Times.
Investment approach
Core focus areas for IFC in India
The IFC, which sees India as its biggest investment destination, has committed $5.4 billion in FY25. This includes a mobilization of $3.4 billion. The organization plans to add around $1 billion annually to reach its ambitious target of $10 billion by 2030. Urbanization, green energy, and MSMEs are the core focus areas for IFC in India.
Urban support
Support extended to Greater Visakhapatnam Municipal Corporation
Recently, the IFC extended its support to the Greater Visakhapatnam Municipal Corporation. This was a first-of-its-kind instance where a development finance institution directly funded an Indian city without any sovereign guarantee. The move is part of the World Bank Group's urban transformation agenda and highlights IFC's commitment to supporting India's urban development initiatives.
Information
Diop praises India's private sector
Diop has praised India's private sector as "resilient," citing reforms like Unified Payments Interface (UPI) and simplification of Goods and Services Tax (GST). He said these were steps in the right direction. Further easing of business processes would only help strengthen the economy, he added.
Global perspective
Global growth forecast and multilateral development reforms
On the global front, Diop acknowledged that trade uncertainty has affected growth but expects it to ease. The World Bank is projecting a modest global expansion of just 2.3% in 2025, which would mark the weakest seven-year stretch since the 1960s. After reforms at multilateral development institutions, IFC and other World Bank Group arms are coming together more closely with integrated solutions combining financing, guarantees, and policy support.