The World Bank Group has helped mobilise USD 36 bn in private capital for development across India over the past four years, including USD 9.6 bn for micro, small and medium-sized enterprises (MSMEs). The funding is intended to support private sector-led growth and employment generation.

Manuel Reyes-Retana, division director for South Asia at the International Finance Corporation (IFC), said mobilisation by the group had increased nearly fivefold from about USD 3 bn in FY22 to USD 14.5 bn in FY26. He attributed the increase to growing interest among investors in diversifying their assets and investment instruments.

Reyes-Retana said guarantees provided by the IFC and the Multilateral Investment Guarantee Agency were attracting institutional investors familiar with the World Bank Group’s governance practices and underwriting standards. The group supports private investment by developing markets, preparing viable projects and reducing risks through financing, guarantees and partnerships.

Under the USD 436 mn Raising and Accelerating MSME Performance (RAMP) programme, the World Bank supported reforms to the Trade Receivables Discounting System (TReDS), a digital platform that helps businesses convert unpaid invoices into cash. The initiative has enabled more than 250,000 MSMEs to access capital more quickly, while 30 non-banking financial companies have joined the platform, widening the lender base.

Credit guarantees for women-owned businesses increased from 14 per cent to 18 per cent over two years and generated more than USD 1 bn, according to the group. India’s first Green MSME Guarantee Fund has supported more than 4,000 MSMEs and facilitated USD 40 mn in investments in green and circular-economy projects. These initiatives are part of the group’s wider partnership with India to support its goal of becoming an upper-middle-income economy over the next decade and achieving the Viksit Bharat vision by 2047.