New Delhi, January 30, 2026—In a major economic development, the World Bank Group (WBG) and the Government of India have unveiled an ambitious new Country Partnership Framework (CPF) that will provide USD 8–10 billion in financing annually over the next five years (FY 2026–31). This marks one of the largest coordinated engagements between India and the World Bank Group, aligned with India’s long-term vision of becoming a developed nation by 2047 under the Viksit Bharat mission.
Shared Priorities & Strategic Focus
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The CPF emphasizes a private sector-led growth model, aiming to catalyze job creation as around 12 million young Indians enter the labour force each year.
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It applies the World Bank’s global jobs strategy, anchored on three strategic pillars:
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Investment in physical and human infrastructure (transport, energy, education, and health).
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Enhancing business environments with predictable regulations and risk mitigation tools.
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Scaling private sector participation in job-rich sectors.
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Key Sectors Targeted for Growth & Jobs
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Infrastructure & Energy
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Agribusiness & rural value chains
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Healthcare services
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Tourism
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Value-added manufacturing
These focus areas are expected to drive broad-based employment opportunities across both urban and rural India.
Four Strategic Outcomes
The CPF targets four core development outcomes:
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Rural prosperity & resilience—boosting diverse income sources and resource management.
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Urban transformation—supporting livable cities with modern services and infrastructure.
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Investing in people—enhancing health, education, and skills aligned with market needs.
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Energy & climate resilience—strengthening energy security and climate-smart infrastructure.
Implementation through Practical Projects
Already ongoing or planned initiatives under the new framework include:
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Pradhan Mantri Skilling & Employability Transformation—$830 million to modernize ITIs and train youth (especially women).
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Maharashtra Resilient Agriculture Project (Phase II)—$490 million to boost productivity with digital and climate-smart solutions.
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Kerala Health Systems Improvement Programme—$280 million for digital health integration.
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Credila Financial Services Initiative—$750 million for expanded student education financing.
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Electric Mobility Scale-Up—investments to accelerate EV adoption and local manufacturing.
Beyond Financing: Knowledge & Reform
Finance Minister Nirmala Sitharaman stressed the CPF goes beyond financing, incorporating technical assistance, knowledge sharing, and global best practices to strengthen institutional capacities.
World Bank Group President Ajay Banga highlighted the emphasis on financing, reforms, and private investment to turn growth into real job opportunities for millions.
Broader Economic Context
India remains one of the World Bank Group’s largest clients, and this new CPF is expected to further deepen the blending of public financing and private capital to unlock investments in high-impact sectors.
Frequently Asked Questions (FAQ)
What is the World Bank–India Country Partnership Framework (CPF)?
The Country Partnership Framework, or CPF, is a five-year strategic agreement between the World Bank Group and the Government of India that outlines how financial support, policy reforms, and private-sector investments will be aligned to support India’s economic growth, employment generation, and long-term development goals.
How much financing will India receive under the new CPF?
Under the newly announced framework, the World Bank Group is expected to provide between USD 8 billion and USD 10 billion in financing every year. Over the five-year period from FY 2026 to FY 2031, this could translate into total support of up to USD 50 billion.
What are the main objectives of this partnership?
The CPF aims to accelerate economic growth, create large-scale employment opportunities, strengthen private sector participation, improve infrastructure and human capital, and enhance India’s resilience to climate and energy challenges, all while supporting the country’s Viksit Bharat 2047 vision.
How does the CPF support job creation in India?
Job creation under the CPF is driven through a private sector–led growth model, investments in job-intensive sectors, support for MSMEs, and skills development aligned with labour market demand. This approach is designed to absorb the nearly 12 million young people who enter India’s workforce each year.
Which sectors are prioritised for development and employment?
The framework prioritises infrastructure and energy, agribusiness and rural value chains, healthcare services, tourism, and value-added manufacturing. These sectors have been identified for their ability to generate employment across both urban and rural regions while supporting long-term economic productivity.
What role do different World Bank Group institutions play in the CPF?
The International Bank for Reconstruction and Development (IBRD) focuses on sovereign lending and public-sector reforms, the International Finance Corporation (IFC) supports private sector investments including MSMEs and startups, and the Multilateral Investment Guarantee Agency (MIGA) provides political risk insurance and guarantees to attract private and foreign investment.
How does the CPF engage with Indian states?
The framework places strong emphasis on state-level implementation through tailored programs that support regulatory reforms, investment facilitation, and capacity building. Special focus is given to lagging and climate-vulnerable states to ensure balanced and inclusive development.
