India might receive $25-30 billion worth of support from the World Bank as the global lender has proposed a five-year framework so that India can transition from low-middle income to higher-middle income nation.
So just a day after PM Modi forecasted about how India will become a $5 trillion economy by 2022, global lender World Bank has announced plans to endorse India in becoming a high-middle income country. Buoyant about India being the fastest growing economy in the world, a major reduction in poverty rates within a decade and holding a global stature Hartwig Schafer, the Vice President of World Bank South Asia said that the country is now well positioned to become a high-middle income nation by 2023.
The World Bank has also proposed a five-year framework called the Country Partnership Framework (CPF), under which the global lender is expected to receive $25-30 billion in financial support for its transition from a low-middle income to a high-middle income country by 2023. The framework focuses on few key subjects to intensify overall development of the nation – like job creation, building a human capital and prioritising resources and growth factor. During this five years of commitment, the World Bank will engage with the government in working in a number of areas and sectors for development.
The financial aid will be granted from the International Bank for Reconstruction and Development (IBRD), the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA). But before implementation of the CPF, a systematic country diagnostic (SCD) will be conducted by the Bank to give out a narrative about the status of nation. This will be the first-of-its-kind project between India and World Bank and will ensure high, sustainable and inclusive growth in years to come.