India has secured $36 billion in development financing over the past 4 years with support from the World Bank Group, with $9.6 billion allocated to micro, small and medium enterprises (MSMEs) to support private-sector growth and employment generation.
Manuel Reyes-Retana, Division Director for South Asia at the International Finance Corporation (IFC), a member of the World Bank Group, said private capital mobilisation had increased nearly 5 times, rising from around $3 billion in FY22 to $14.5 billion in FY26. The group has facilitated a total of $36 billion for development across multiple sectors during this period.
“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 provided by the IFC and the Multilateral Investment Guarantee Agency (MIGA) have gained the confidence of investors. Institutional investors value these guarantees because of their familiarity with the World Bank Group’s governance practices and underwriting standards.
The group helps connect government development priorities with private investment by strengthening markets, developing viable projects and reducing investment risks through financing, guarantees and partnerships.
As part of its support for MSMEs, the World Bank backed reforms under the $436 million Raising and Accelerating MSME Performance (RAMP) initiative. These reforms have supported the Trade Receivables Discounting System (TReDS), a digital platform that enables businesses to convert unpaid invoices into funds more quickly.
The initiative has helped more than 2.5 lakh MSMEs access capital faster, while 30 non-banking financial companies have joined the platform, expanding the pool of lenders.
The World Bank Group also reported progress in financing women-led businesses. Credit guarantees for these enterprises increased from 14% to 18% over 2 years, generating more than $1 billion.
Additionally, India’s first Green MSME Guarantee Fund has supported over 4,000 MSMEs, enabling $40 million in investments in green and circular-economy initiatives.
These efforts form part of the World Bank Group’s broader partnership with India to support its transition towards upper-middle-income status over the next decade and contribute to the Viksit Bharat vision for 2047.
Also read: Viksit Workforce for a Viksit Bharat
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