World Bank Group commits $18 bn loan to India in 3 years

Jul 23 2014, 20:26 IST
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India is the largest client for the World Bank Group.(Reuters) India is the largest client for the World Bank Group.(Reuters)
SummaryThe new government would like India to return to growth rate of 9 per cent and the World Bank fully supports this growth.

The World Bank Group today committed $15-18 billion loan to India over the next three years as it supports the country's potential 9 per cent growth rate.

"We did not discuss specific funding issues. Over the next three years on the public side of operations we can provide India with $15-18 billion and on the private side (IFC) of things a minimum of $3.5 billion," World Bank Group President Jim Yong Kim said here.

International Finance Corporation (IFC), a member of the World Bank Group, finances and provides advice for private sector ventures and projects in developing countries.

India is the largest client for the World Bank Group. India received USD 5.2 billion loan last fiscal. In the past three years, India had received about USD 9.8 billion loan from the Workd Bank Group.

"From my discussions with Prime Minister (Narendra) Modi and (Finance) Minister Arun Jaitley, it is clear that they are committed to increasing India's economic growth. I assured them that the World Bank Group will bring to bear all possible knowledge and financing to help them in this task," he said.

"The new government would like India to return to growth rate of 9 per cent and the World Bank fully supports this growth. It is vital that the country achieves this growth to reduce poverty more quickly and share prosperity among it people," he added.

Kim, who is on a three-day visit to India to learn more about the new governments development priorities, said: "In my meeting with the Prime Minister and the Finance Minister we discussed how to unlock India's growth potential and how to manage the vast demography of the country.

It will be critical to build more quality infrastructure, expand financial access, improve investment climate and invest on its people, he said.

He emphasised that the government is committed to introducing key reforms, which are critical to India achieving its full economic potential.

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