World Bank and India announce new Country Partnership Framework

Ajay Banga, president of the World Bank
| Photo Credit:
KRISZTIAN BOCSI

India and the World Bank Group have unveiled a new Country Partnership Framework (CPF) designed to propel India’s economic expansion and advance its Viksit Bharat development vision.

The announcement followed discussions between Finance Minister Nirmala Sitharaman and World Bank President Ajay Banga. Sitharaman endorsed the CPF’s alignment with national objectives, emphasizing: “Blending public resources with private investment, generating employment nationwide, and integrating global expertise will be vital for achieving transformative results.” She expressed optimism about the framework’s potential impact over its five-year implementation period.

Banga highlighted India’s position as a global growth catalyst, stating: “Our enhanced collaboration focuses on accelerating progress toward Viksit Bharat 2047. Job creation remains fundamental – this partnership combines financing, policy improvements, and business investments to convert economic growth into widespread opportunity.”

The multilateral institution outlined its three-part employment strategy: developing critical infrastructure (physical and human capital), establishing predictable regulatory frameworks, and implementing risk mitigation measures to attract private capital. This approach prioritizes five high-employment sectors: energy and infrastructure, agriculture, healthcare, tourism, and advanced manufacturing.

 “Through an annual commitment of $8-10 billion over five years using diverse financial instruments, this partnership will implement the global employment strategy in India – driving job growth and unlocking substantial private investment,” the World Bank confirmed.

The initiative particularly targets private sector-led employment generation by enhancing workforce skills, easing operational constraints for SMEs, and expanding economic participation for youth and women. Strategic priorities include: enhancing rural development, transforming urban centers, investing in human capital, and strengthening energy infrastructure and climate resilience.

Implementation will include active projects such as the Pradhan Mantri Skilling initiative, where an $830 million loan supports modernization of Industrial Training Institutes through private sector collaboration to train over one million youths (with special focus on women). Concurrently, the $490 million Maharashtra Resilient Agriculture Project (Phase II) aims to boost farm productivity and sustainability through digital farming technologies.

Published on January 30, 2026