World bank

World Bank Lends Record $9.3 billion to India in FY 10

World Bank Lending to India Click to Enlarge New Bank Lending in FY10 Country Wise Click to Enlarge Related Content Q&A Press Release List of New Projects The World Bank has lent a record $9.3 billion to India in FY10 The lending responds to the Government of India's request to help insulate its capital markets from the global slowdown; to remove infrastructure constraints to high growth; and to continue delivering essential social services. With this, the World Bank's current India portfolio consists of 65 active projects with total commitment of just under $19 billion. June 23, 2010: The World Bank’s lending to India for fiscal year ending June 2010 will reach $9.3 billion; of this, $2.6 billion came as interest free credits from IDA (the International Development Association) and $6.7 billion was in the form of long-term, low-interest loans from IBRD (the International Bank for Reconstruction and Development). Although this is a small sum for India’s $1.2 trillion economy, it represents a sharp increase from the $2.2 billion lent to India by the Bank last year  (Bank lending to India has traditionally averaged about $2.5-3 billion a year). The increased lending to India is the result of several forces at work. One is the guidance from the G 20 during its November 2008 summit when it directed the international financial institutions to step up their financial support to emerging economies. The Bank stepped up to the challenge and has made global commitments of $120 billion since July 2008.  The increased lending to India thus forms part of a global trend. Another factor relates to the huge demands of India’s fast-growing economy which needs sustained growth of 8-10% to lift some 400 million people out of poverty. For instance, the Government of India (GOI) estimates that it will need $500 million for building infrastructure alone during the current five year plan. Moreover, over the past few years, countries like China and India have increasingly voiced their demand for additional infrastructure lending, and the Bank has been making sustained efforts to respond to it.