New Delhi: The World Bank Group will extend USD 8–10 billion per year to India over the next five years to support economic expansion and job creation, under a new Country Partnership Framework signed with the government. This represents an annual increase of about USD 2–3 billion compared with the earlier programme.

Finance minister Nirmala Sitharaman welcomed the agreement, saying it is fully aligned with the Viksit Bharat vision.“Leveraging public funds with private capital, creating more jobs across rural and urban India, and enriching projects with the bank group’s global knowledge will be key to achieving sustainable impact at both speed and scale,” she said.

Focus on private sector jobs

At the centre of the new partnership is private sector-driven employment generation. With nearly 12 million young people entering India’s workforce every year, unlocking private investment in job-intensive sectors has been identified as a key priority for the next phase of growth, the World Bank said.

World Bank Group president Ajay Banga, who is in India for the announcement, said the partnership is designed to accelerate India’s journey towards Viksit Bharat by 2047. “Creating more jobs is at the core of our work. This partnership brings together financing, reforms and private sector investment to turn growth into opportunity for millions of Indians,” he said.

Shift in engagement approach

The framework reflects a change in how the World Bank Group works with India, following a year-long effort to make the partnership more selective, scalable and impact-oriented. A major emphasis will be on using public financing to mobilise significantly larger volumes of private capital.

Key priorities include upgrading skills, easing constraints faced by small and medium enterprises, and expanding economic opportunities, particularly for youth and women. The framework also applies the World Bank Group’s global jobs strategy, focusing on physical and human infrastructure, a stable regulatory environment, and risk-management tools to help scale private investment.

Priority sectors and outcomes

The partnership identifies infrastructure and energy, agribusiness, healthcare, tourism and value-added manufacturing as priority sectors. It outlines four strategic outcomes: boosting rural incomes beyond agriculture; supporting urban transformation as India’s urban population is projected to reach 800 million by 2050; investing in health, education and skills; and strengthening energy security, core infrastructure and climate resilience, including renewable energy, e-mobility and green hydrogen.

Projects already in the pipeline

Implementation will begin immediately through ongoing and new initiatives. These include an USD 830 million loan to upgrade industrial training institutes under the Pradhan Mantri Skilling and Employability Transformation programme, an USD 490 million Maharashtra project on climate-resilient agriculture, an USD 280 million Kerala initiative to strengthen digital health systems, and an USD 750 million programme through Credila Financial Services to expand access to higher-education financing.

The World Bank Group is also backing India’s electric mobility transition through a programmatic approach that includes payment security mechanisms for state and municipal transport bodies.

India remains the World Bank Group’s largest client, with USD 20 billion in commitments from IBRD across 79 projects, USD 16.72 billion in investments by the IFC in 174 projects, and USD 618 million in guarantees from MIGA. Under the new framework, a larger share of lending will be used to crowd in private investment, drawing more heavily on the group’s private sector instruments and global expertise.