World Bank Group Mobilises $36 Billion In Private Capital For India, $9.6 Billion For MSMEs

New Delhi, Oct 15 (KNN) The World Bank Group has helped mobilise USD 36 billion in private capital for development across India over the past four years, including USD 9.6 billion for micro, small and medium enterprises (MSMEs), to support private sector-led growth and employment generation.

Manuel Reyes-Retana, Division Director for South Asia, International Finance Corporation (IFC), a member of the World Bank Group, said private capital mobilisation by the group had increased nearly fivefold, from around USD 3 billion in FY22 to USD 14.5 billion in FY26.

“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 said.

Reyes-Retana noted that guarantees offered by the IFC and the Multilateral Investment Guarantee Agency (MIGA) were gaining traction among investors, particularly institutional investors familiar with the World Bank Group’s governance practices and underwriting standards, reported The Tribune.

The World Bank Group supports private investment by developing markets, preparing viable projects and reducing risks through financing, guarantees and partnerships, he said.

MSME Financing And Digital Reforms

Through the USD 436-million Raising and Accelerating MSME Performance (RAMP) programme, the World Bank supported reforms to the Trade Receivables Discounting System (TReDS), a digital platform that enables businesses to convert unpaid invoices into cash.

The initiative has helped more than 2.5 lakh MSMEs access capital more quickly, while 30 non-banking financial companies have joined the platform, expanding the pool of lenders.

Credit guarantees for women-owned businesses have also increased from 14 per cent to 18 per cent over two years, generating more than USD 1 billion, according to the World Bank Group.

Support For Green MSMEs

India’s first Green MSME Guarantee Fund has supported more than 4,000 MSMEs and facilitated USD 40 million in investments in green and circular-economy initiatives, the group said.

The investments form part of the World Bank Group’s broader 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.

(KNN Bureau)