JOIN USIndia’s infrastructure sector, development of which is crucial for attaining high economic growth, is expected to get a major boost with the World Bank promising financial support at a time when Asia’s third largest economy is looking for ways to raise fund to aid the creaking sector.
“We are committed to supporting the government’s ambitious development goals…, especially in infrastructure financing, so that India can build the roads, highways, railway lines and power plants needed to propel growth,” World Bank Group President Robert B Zoellick said in a statement on Sunday, a day ahead of his visit to India.
India has envisaged $1 trillion worth of investment in the infrastructure sector to build roads, highways, railway lines and power plants needed to fast track it growth momentum.
But, the slowdown in major western economies is expected to affect the much-needed foreign investment in the sector, and analysts believe the Bank’s support at this juncture may prove crucial
“Shifts in the world economy could affect India’s growth momentum and sharpen its development challenges. The Bank stands ready to continue to support India with its knowledge and financial resources to meet the challenges ahead,” Zoellick said.
India is one of the founding members of the World Bank and is among the top aid recipients.
India is also the largest client for the International Bank for Reconstruction and Development (IBRD), which lends to middle income countries and its private sector arm and the International Financial Corporation (IFC).
The World Bank Group in its last fiscal (ending June 2011) made $6.33 billion available to India, including $3.46 billion from IBRD, $775 million from IFC, and $2.07 billion from its fund for the poorest, the International Development Association (IDA).
Zoellick will also take stock of India’s efforts to overcome poverty and other development related projects on the eve of the beginning of the 12th Five Year Plan.