World Bank Group channels $36 bn private capital to India, $9.6 bn for MSMEs

The World Bank Group has facilitated $36 billion in private capital for development projects in India during the last four years, with $9.6 billion earmarked for micro, small and medium enterprises. According to Manuel Reyes-Retana, the IFC’s South-Asia division director, private capital mobilisation surged to $14.5 billion in fiscal 2026 from roughly $3 billion in fiscal 2022, a rise attributed to risk-mitigating guarantees from the International Finance Corporation and the Multilateral Investment Guarantee Agency.

These guarantees have made World Bank-backed assets attractive to institutional investors familiar with the Group’s underwriting standards. In parallel, the Bank’s $436 million RAMP programme has reformed the Trade Receivables Discounting System, enabling over 250,000 MSMEs to obtain faster financing and adding 30 non-bank lenders. Credit guarantees for women-owned firms rose to 18 percent, mobilising over $1 billion, while the Green MSME Guarantee Fund has supported more than 4,000 firms and $40 million in green investments. The effort aligns with the World Bank’s Country Partnership Framework for FY26-31, aimed at fostering inclusive, private-sector-led growth toward India’s Viksit Bharat vision for 2047.