India has attracted significant investor interest through development-focused funding. The World Bank Group has helped mobilize $36 billion in private capital over the past four years. Of this, $9.6 billion went toward supporting Micro, Small and Medium Enterprises (MSMEs).

Private capital mobilization by the Group rose nearly five-fold to $14.5 billion in fiscal 2026 from around $3 billion in fiscal 2022. Manuel Reyes-Retana, International Finance Corporation (IFC) division director for South Asia, said the growth reflects rising interest in development-linked investments.

The Group is using guarantees and other risk-sharing tools to reduce investment risks. These measures help attract private investors and support India's development priorities.

Key Highlights

• The World Bank Group mobilized $36 billion in private capital for India over four years.
• MSMEs received $9.6 billion in mobilized funding during the period.
• More than 250,000 MSMEs gained faster access to capital through reforms to the TReDS platform.

How Is the World Bank Group Attracting Private Investment?

The World Bank Group uses guarantees from the IFC and the Multilateral Investment Guarantee Agency (MIGA) to make investments more attractive. These instruments help reduce risks for investors and encourage funding for development projects.

Institutional investors are showing growing interest in these opportunities. Reyes-Retana told PTI that investors in India and other markets are looking to diversify their assets and investment instruments. Their familiarity with the Group's underwriting standards and governance practices also supports confidence in these investments.

Private capital mobilization brings private investors into development projects alongside public funding. It can help finance projects by sharing risks and improving their appeal to investors. The approach also supports the government's efforts to encourage private sector-led growth and create jobs.

The Group's Country Partnership Framework for fiscal 2026–31 focuses on inclusive and sustainable growth. It also supports India's Viksit Bharat vision for 2047 and its ambition to become an upper-middle-income economy over the next decade.

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How Are MSMEs Gaining Better Access to Finance?

The World Bank Group has supported measures to improve access to finance for India's MSMEs. These businesses contribute to employment and economic activity but often struggle to obtain affordable credit.

Under the $436 million Raising and Accelerating MSME Performance (RAMP) program, the World Bank supported reforms to the Trade Receivables Discounting System (TReDS). The digital platform allows businesses to raise funds against unpaid invoices instead of waiting for buyers to make payments.

According to the World Bank Group, these efforts have helped more than 250,000 MSMEs access capital faster. The platform has also expanded its lending network, with 30 non-banking financial companies joining it.

The Group has also supported financing for women-owned businesses and green enterprises. Credit guarantees for women-owned businesses increased from 14% to 18% over two years, mobilizing more than $1 billion.

Meanwhile, India's first Green MSME Guarantee Fund has benefited more than 4,000 MSMEs. It has supported $40 million in investments in green and circular-economy activities.

The World Bank Group aims to connect India's development priorities with private investment by strengthening markets, structuring viable projects, and reducing risks through financing and partnerships. Its efforts are intended to expand funding access, encourage business growth, and support job creation.