World Bank approves 1 billion USD to India
On May 15, 2020, the World Bank approved 1 billion USD aid to India to accelerate “India’s COVID-19 Special Protection Response Programme”. The fund will be used to provide social assistance to poor, severely impacted and vulnerable households.
Of the 1 billion USD aid, around 550 million USD is to be credited by the IDA (International Development Association) and 220 million USD by the IBRD (International Bank of Reconstruction and Development). The final maturity amount of the loan is 18.5 years. It also includes a grace period of five years.
With this financial aid, the total commitment of World Bank towards India has increased to 2 billion USD. In April 2020, the World Bank announced 1 billion USD support to aid the health sector of India.
What is the plan?
The World Bank will partner with India in three areas namely, health, social protection and MSME (Micro, Small and Medium Enterprises).
India has also received financial aids from AIIB (Asian Infrastructure and Investment Bank), ADB (Asian Development Bank).