The International Finance Corporation (IFC), a member of the World Bank Group, has contributed significantly to climate and housing projects, small and medium-sized businesses, and women in India. IFC’s record-breaking year of collaboration with the private sector has benefited 32 projects in India, targeting job creation, boosting private sector productivity, and driving financial inclusion, all while supporting the nation’s ambitious climate goals for sustainable growth.
IFC’s investments in India have reached a global high, with a portfolio exceeding $8 billion, of which approximately 36% is allocated to equity investments. The organization’s long-term financing, including mobilization, has more than doubled from $1.3 billion in Fiscal Year 2022 to $3 billion in Fiscal Year 2023. As of April 30, 2024, IFC’s total commitments and board-approved funding have surged to $3.8 billion, reflecting a robust trajectory.
IFC’s partnership with India’s private sector has witnessed remarkable growth in the past two years, driving development impact across critical areas such as housing, climate, and micro, small, and medium enterprises (MSMEs). It has also championed inclusion and gender equality. IFC’s Regional Vice President for Asia and the Pacific, Riccardo Puliti, emphasized the importance of this year in addressing the climate crisis and supporting the private sector in fostering global and regional integration.
Addressing India’s significant housing shortage, where an estimated 275 million people require access to adequate housing, IFC’s initiatives in Fiscal Year 2024 will enable clients like Cholamandalam Investment and Finance Co., IIFL Home Finance Ltd, and Vastu Housing Finance Corp. to finance over 270,000 affordable housing loans, with 86,000 specifically tailored for women.
IFC’s funding in Fiscal Year 2024, which spans manufacturing, agribusiness and services, and infrastructure, is positioned to reduce greenhouse gas emissions by over 12 million tonnes annually. This aligns with India’s substantial climate financing needs, with a cumulative investment requirement of $10.1 trillion by 2070. IFC’s financing will also support financial institutions in providing nearly 29,000 climate loans in crucial sectors like industrial decarbonization, renewable energy, electric vehicles, and green buildings.
IFC’s funding to Grasim Industries Ltd will accelerate its corporate-wide decarbonization measures, promoting reduced fossil fuel energy usage and increased recycled water consumption. Additionally, IFC’s equity investment in Federal Bank Ltd will strengthen the bank’s climate and MSME lending capabilities.
Through its equity investment in the Global Environment Fund South Asia Growth Fund III, IFC aims to enhance access to private equity capital for climate investments and value creation for mid-cap companies in India’s climate sector. IFC’s advisory work supports partners in boosting renewable energy in the country. A 1400 MW solar project with Rewa Ultra Mega Solar Ltd and partners in Madhya Pradesh will integrate wind and storage to supply Firm and Dispatchable Renewable Energy, resulting in an expected annual CO2 reduction of approximately 3 million tonnes.
