The World Bank Group has helped mobilise $36 billion in private capital for development in India over the past four years, including $ 9.6 billion for Micro, Small and Medium Enterprises (MSMEs), as it steps up efforts to spur private sector-led growth and job creation.
Private capital mobilisation by the Group rose nearly five-fold to $14.5 billion in fiscal 2026 from about $3 billion in fiscal 2022, Manuel Reyes-Retana, IFC's division director for South Asia, said.The increase reflects growing investor interest in development-linked investments, with guarantees from the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA) helping reduce investment risks and attract private funding, he 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.
Private capital mobilisation involves attracting investment from private investors to finance development projects and supplement public funding. It enables development projects to tap private investment alongside public funding, with guarantees and other risk-sharing mechanisms helping make investments more attractive to investors.
The World Bank Group has also supported initiatives to improve access to finance for India's MSMEs, which play a key role in employment and economic activity but often face constraints in obtaining affordable credit.
The initiative has helped more than 250,000 MSMEs gain faster access to capital, while 30 non-banking financial companies have joined the platform, expanding the pool of lenders, the World Bank Group 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. - PTI
