“An economy of this size, growing at this speed, requires us to increase both our ambition and commitment,” Diop told ET in an interview. IFC, which counts India as the largest investment destination in its portfolio, committed $5.4 billion in FY25, including $3.4 billion in mobilisation. It aims to add about $1 billion each year to reach the $10 billion target.
Urbanisation, green energy and MSMEs remain IFC’s core focus areas in India. The institution recently backed the Greater Visakhapatnam Municipal Corporation – the first time a development finance institution directly funded an Indian city without a sovereign guarantee – as part of the World Bank Group’s urban transformation agenda.
Diop described India’s private sector as “resilient” and said reforms such as the Unified Payments Interface (UPI) and simplification of the goods and services tax (GST) were steps in the right direction. Further easing of business processes, he added, would help strengthen the economy.
On the global outlook, Diop acknowledged that trade uncertainty has weighed on growth but expects it to ease. The World Bank is projecting global expansion of just 2.3% in 2025, adding up to the weakest seven-year stretch since the 1960s.
Following reforms at multilateral development institutions, IFC and other World Bank Group arms are aligning more closely, offering integrated solutions that combine financing, guarantees and policy support.
as a Reliable and Trusted News SourceContent Source: economictimes.indiatimes.com