World Bank Clears USD 1.5 Bn Funding To Spur Private Sector Jobs In India

New Delhi, Jun 20 (KNN) The World Bank's Board of Executive Directors has approved USD 1.5 billion in financing to support structural reforms aimed at boosting private sector-led job creation and economic growth in India, under the Boosting Job Creation in the Private Sector Development Policy Financing (DPF) Operation.

The World Bank, in an official release, said the operation could help create job opportunities for the 11 million youth expected to enter India’s labour market annually over the next two decades.

Johannes Zutt, World Bank Vice President, South Asia, noted, “India is well paced in its reforms agenda to unlock private capital and create jobs in a challenging global context.”  

“By reducing the regulatory burden on firms, expanding market access, and improving access to finance, the operation creates conditions for Indian firms to scale, invest, and hire — directly generating quality jobs across sectors,” Zutt added.

Building on Existing Reforms

The DPF Operation builds on structural reforms India has undertaken in recent years, including tax simplification, trade integration, and legislative changes aimed at improving ease of doing business. 

It supports tax and regulatory reforms to reduce barriers to entrepreneurship, labour law updates to encourage women's participation in formal employment, measures to streamline trade and investment regimes, and steps to facilitate capital mobilisation.

The financing follows the consolidation of 29 labour laws into four comprehensive Labour Codes in November 2025, a move intended to simplify compliance and modernise the regulatory framework while safeguarding workers' rights.

Areas of Focus

The operation is aligned with the World Bank Group's Country Partnership Framework for India for FY26-31 and supports reforms across three areas: strengthening the business-enabling environment, advancing trade and investment openness, and mobilising private capital for firm expansion and job creation.

Aurélien Kruse and Laurent Gonnet, task team leaders of the operation, said the DPF supports measures to unlock financing particularly for micro, small and medium enterprises, as well as women-owned enterprises and underserved borrowers, and that improving MSME access to finance will make firms and workers more resilient to shocks.

(KNN Bureau)