The World Bank Group has achieved a landmark milestone by mobilising a record $112 billion in private capital globally in fiscal 2026, representing a more than three-fold increase from approximately $35 billion in FY22. According to World Bank Group President Ajay Banga's address at the 2026 Annual Meetings in Bangkok on October 16, when combined with the institution's own financing, total financing exceeded $230 billion, reflecting a broader effort to attract private investment into development projects. Investors from 110 countries contributed to this mobilisation, with Banga identifying the United States, United Kingdom and India as the leading sources. The results show private capital mobilisation in lower-middle-income countries nearly tripled to $37 billion between FY22 and FY26, while upper-middle-income economies recorded an increase to $50 billion. Mobilisation across Africa more than doubled to $22 billion, though low-income countries remained largely unchanged at around $3 billion.
India has emerged as one of the top three sources of private capital mobilised by the World Bank Group, alongside the United States and the United Kingdom, as the institution's annual mobilisation more than tripled to $112 billion. According to reports from Rediff Moneynews, private capital mobilisation by the Group rose nearly five-fold to $14.5 billion in fiscal 2026 from approximately $3 billion in fiscal 2022. Approximately $9.6 billion of the total $36 billion mobilised was specifically directed towards micro, small and medium enterprises (MSMEs) to boost private sector-led growth and job creation. The World Bank Group has been changing its financing approach to stretch limited public resources further and support employment generation, with guarantees, equity investments and local-currency financing being used to reduce risks that discourage private investors from entering developing markets. The institution issued a record $25 billion in guarantees last fiscal year, as reported by NDTV Profit.
Under the $436 million Raising and Accelerating MSME Performance (RAMP) programme, the World Bank supported significant reforms to improve access to finance for India's MSME sector. As reported by Rediff Moneynews, the initiative has helped more than 250,000 MSMEs gain faster access to capital, while 30 non-banking financial companies have joined the platform, expanding the pool of lenders available to these businesses. The programme has also resulted in credit guarantees for women-owned businesses rising to 18 per cent from 14 per cent over two years, mobilising more than $1 billion in funding. The initiative includes support for the Trade Receivables Discounting System (TReDS), a digital platform that allows businesses to raise funds against unpaid invoices rather than wait for buyers to pay, significantly improving MSMEs' access to affordable credit.
India's first Green MSME Guarantee Fund has demonstrated significant impact in supporting sustainable business development. According to Rediff Moneynews, the fund has benefited more than 4,000 MSMEs and supported $40 million in investments in green and circular-economy activities. This initiative forms part of the World Bank Group's broader partnership with India to promote job-rich, private sector-led growth and support the country's ambition to become an upper-middle-income economy over the next decade. Under its Country Partnership Framework for fiscal 2026-31, the Group is focusing on inclusive and sustainable growth in support of India's Viksit Bharat vision for 2047. The World Bank Group has been changing its financing approach to stretch limited public resources further and support employment generation, with guarantees, equity investments and local-currency financing being used to reduce risks that discourage private investors from entering developing markets.
Looking ahead, World Bank Group President Ajay Banga emphasised that the next challenge is to direct more investment towards countries where commercial financing remains difficult to secure. With an estimated 1.2 billion young people expected to enter the job market over the next 10 to 15 years, against a projected 400 million jobs, he emphasised that mobilising private capital and creating employment must advance together. The World Bank Group has been reducing project preparation time from 19 months to nine months and created more than $100 billion in additional lending capacity over a decade through balance-sheet reforms. The institution has reduced project preparation time from 19 months to nine months and created more than $100 billion in additional lending capacity over a decade through balance-sheet reforms, as reported by NDTV Profit.
