World Bank approves $500m boost to Indian MSMEs
The World Bank has approved a $500 million program to support the government of India’s nationwide initiative to revitalise the MSME sector, which has been heavily impacted by the COVID-19 crisis.
The program targets improvements in the performance of 555,000 MSMEs and is expected to mobilise financing of $15.5 billion, as part of the government’s $3.4 billion MSME Competitiveness – A Post-COVID Resilience and Recovery Programme.
The World Bank Group, including its private sector arm the International Finance Corporation, will support the MSME sector by strengthening institutional capacity and coordination, and supporting firm capabilities and access to markets and finance.
In addition to national level activities, the program will initiate targeted activities in five “first mover” states – Gujarat, Maharashtra, Punjab, Rajasthan, and Tamil Nadu with the potential of additional states joining the program going forward.
The $500 million loan from the International Bank for Reconstruction and Development, has a maturity of 18.5 years including a 5.5-year grace period.
