Posted in Finance Articles, Total Reads: 2193
, Published on 05 June 2011
Every business organization, independent entity or an entrepreneur needs funds to manage its operations and businesses. Companies in India can nowadays easily access loans from various public sector and private sectors banks present in the Indian Banking Industry for the growth of their projects, businesses and ideas. As and when the business succeeds, the companies can repay their loans to the banks. But happens when a country itself wants money for growth of infrastructure, eradicating poverty, and generating power? This is where one of the world’s most dependable organizations comes to the rescue for lending its support- the World Bank.
World Bank provides loans, credits and grants to developing countries & emerging economies like India for a wide array of purposes that include investments in education, health, public administration, infrastructure, financial and private sector development, agriculture and environmental and natural resource management. With the support and guidance of the World Bank, India has managed to achieve significant landmarks in the field of infrastructure, social development, energy sector etc.
Some of the major efforts in which the World Bank has lent its support to India are discussed below:
•Providing relief to cyclone/ natural disaster prone places:
World Bank has agreed to support the Indian national programme to mitigate cyclone impact by providing relief for the over one million people living in the coastal areas of Andhra Pradesh and Orissa, who face the wrath of cyclones year after year by providing a credit of $255 million.
A $220-million agreement with the World Bank was signed for rehabilitation and construction of houses affected due to floods in Bihar, alongwith reducing risks of flooding and boosting emergency responses in the event of future disasters, which affected 3.3 million people of which 4.6 lakh have been living in temporary shelters.
The World Bank has stated in its latest report that India can generate 68,000 MW of power using renewable sources of energy like solar energy, wind energy and hydro-power, which could tremendously increase India’s power generation sector. This would make India self sufficient alongwith the nuclear energy operations in India.
•Improving Health Systems:
World Bank with its funding is helping to collaborate on group purchasing of essential medications, establishing a health technology assessment institution etc to tackle the current health needs of the people with changing times.
Rural roads are revitalizing village economies in Rajasthan and Himachal Pradesh. Mumbai Urban Transport Project (MUTP) is carrying out much-needed improvements to Mumbai’s rail and road infrastructure. Building inter-state highways also is beneficial for connecting Rural India to the urban centres.
The approx amount invested by World Bank in India can be seen from the current lending in different sectors in millions of US dollars for the year 2010-11 can be seen as below:
India which is one of the biggest democracies and fastest growing economies in the world still faces acute problems like poverty, illiteracy, malnutrition etc which has created parity in India. This is where a symbiosis between World Bank and various developmental organisations can help in a brighter future for India.
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