World Bank approves framework to support India’s transition to high-middle income country
The World Bank board has approved an ambitious five-year Country Partnership Framework (CPF) for India that is in line with India’s objectives of high, sustainable and inclusive growth. The framework sets the strategic focus for the World Bank’s engagement with India for the period FY18-22.
The World Bank board has approved an ambitious five-year Country Partnership Framework (CPF) for India that is in line with India’s objectives of high, sustainable and inclusive growth.
The framework sets the strategic focus for the World Bank’s engagement with India for the period FY18-22, to support its transition to a high-middle income economy.
Through the CPF, the World Bank aims to support India's transition to a higher middle-income country by addressing some of its key development priorities such as resource efficient and inclusive growth, job creation and building its human capital.
The framework is expected to bring financial support worth Rs 25-30 billion US Dollars from the International Bank for Reconstruction and Development (IBRD), the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA).
The three elements CPF will be based on include:
- Government of India’s development priorities
- World Bank’s Systematic Country Diagnostic (SCD) for India, which presents the Group’s analysis of the key challenges facing India
- World Bank’s comparative advantage and value proposition to support India
The CPF also incorporates lessons learned from the last five years of implementation of the Country Partnership Strategy FY13-17.
The SCD Perspective on India’s Historic Journey
Three challenges faced by India in its aspiration to become a middle-class country include:
- Scarcity and inefficiency of resources: land, water and air
- Disparities and divergence in the creation of jobs and inclusion across locations
- Uneven state capability
To fulfill its objective of bringing about economic transformation in India, the World Bank’s framework will address key themes including addressing climate change in support of India’s national determined contributions on climate change, addressing gender gap focusing on women’s economic empowerment and addressing the impacts of technology change.
India has posted incredible growth and development over the last several decades.
It has gone from a low-income country status to a low-middle income and now, it is entering the economic transformation from low-middle income to high-middle income country.
Hence, India is well-positioned to become a high middle-income country by 2030.
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