The World Bank Group has announced a new partnership with the Government of India aimed at accelerating job creation across urban and rural regions, with funding that could reach up to $50 billion over the next five years. The new country partnership framework came into effect at the beginning of 2026 and marks a significant expansion over the previous funding cycle.
Under the new plan, the World Bank will provide annual financing of $8–10 billion, compared to $6–7 billion a year under the earlier framework that ran from FY18 and was extended till December 2025 due to the Covid-19 pandemic. The initiative is expected to play a key role in supporting India’s long-term development and employment goals.
Focus on Job-Intensive Growth Sectors
The World Bank said the fresh round of funding will prioritise sectors capable of generating large-scale local employment, including infrastructure and energy, agribusiness, healthcare, tourism and value-added manufacturing. These sectors are seen as critical for absorbing India’s expanding workforce while strengthening economic resilience.
Funds will be deployed immediately through existing government programmes such as the Pradhan Mantri Skilling and Employability Transformation scheme through upgraded ITIs, the Maharashtra Project on Resilient Agriculture, the Kerala Health Systems Improvement Programme, and initiatives aimed at expanding electric mobility across the country.
Aligned With India’s Viksit Bharat Vision
Finance Minister Nirmala Sitharaman said the partnership would have a sustainable impact on employment creation and aligns closely with India’s vision of becoming a developed nation by 2047. She said leveraging public resources alongside private capital and global expertise would be essential to creating jobs at scale across both rural and urban India.
World Bank Group president Ajay Banga, who was in India for the announcement, described India as one of the key engines of global growth. He said job creation remains central to the World Bank’s engagement with the country and that the partnership would combine financing, policy reforms and private-sector investment to translate growth into opportunity for millions of Indians.
India Remains World Bank Largest Client
India continues to be the World Bank Group’s largest client globally. Current commitments include $20 billion from the International Bank for Reconstruction and Development across 79 projects, $16.72 billion from the International Finance Corporation across 174 projects, and $618 million in guarantees from the Multilateral Investment Guarantee Agency.
As of December 31, 2025, the World Bank’s India portfolio comprised 710 projects with total commitments of $139.07 billion, spread across agriculture, energy, health, education, infrastructure, transport, urban development, water and digital services. The new partnership is expected to further shift World Bank resources towards leveraging private-sector capital while deepening its long-term engagement with India’s development priorities.