The International Finance Corporation (IFC), the private sector arm of the World Bank Group, plans to double its annual investments in India to $10 billion by 2030, focusing on urbanisation, green energy, and MSMEs.
IFC committed $5.4 billion in FY25, including $3.4 billion mobilised through partnerships, highlighting its ongoing support for India’s resilient private sector. The organisation aims to increase commitments by about $1 billion annually to reach its target.
India Remains IFC’s Largest Portfolio
Makhtar Diop, IFC’s managing director, described India as the largest investment destination in the IFC portfolio. He noted that a fast-growing economy of India’s size requires greater ambition and commitment.
Urbanisation projects include backing the Greater Visakhapatnam Municipal Corporation, marking the first time a development finance institution directly funded an Indian city without a sovereign guarantee, as part of the World Bank Group’s urban transformation agenda.
Private Sector and Reforms
Diop highlighted India’s resilient private sector and cited reforms like Unified Payments Interface (UPI) and simplified GST processes as positive steps. He added that further easing of business procedures would strengthen the economy and support private sector growth.
Global Economic Outlook
On the global front, Diop acknowledged trade uncertainties that have affected growth but expects conditions to improve. The World Bank projects global expansion of 2.3% in 2025, marking the slowest seven-year period since the 1960s.
Integrated Development Solutions
Following reforms at multilateral institutions, IFC and other World Bank Group arms are offering integrated solutions, combining financing, guarantees, and policy support to better serve emerging markets like India.
