New Delhi: The World Bank’s Board of Executive Directors on Friday approved $1.5 billion in financing to India to support structural reforms aimed at boosting private sector-led job creation and economic growth.
The financing is being provided under the Development Policy Financing (DPF) Operation, the Bank said in a statement. DPF is a budget-support instrument that provides quick-disbursing financing against policy reforms implemented by the government.
According to the World Bank, the reforms backed by the loan can create job opportunities for 11 million youth who will be entering the labour market every year over the next two decades.
The approval comes as India focuses on leveraging private sector investment to absorb its growing workforce. The World Bank noted that structural reforms supported under the operation are designed to improve the business environment and enable faster job creation.
DPF financing is typically linked to policy actions in areas such as investment climate, labour markets, financial sector and governance. The Bank did not specify the exact reforms covered under this tranche in the statement.
