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The International Finance Corporation (IFC), part of the World Bank Group, has set a target to increase its annual investments in India to USD 10 billion by 2030, with a focus on renewable energy, urban infrastructure and financial services. Investment levels in India have already risen to around USD 5.4 billion in financial year 2024/2025, compared to about USD 1.3 billion in financial year 2021/2022. India remains IFC’s largest global market with a portfolio of nearly USD 10.3 billion as of the financial year ended June 2025. The institution is also exploring municipal bond-led urban financing models.
The International Finance Corporation (IFC) has outlined plans to expand its annual investment exposure in India to USD 10 billion by 2030, with capital deployment expected to remain concentrated in renewable energy, urban infrastructure development and financial services. Advertisement
Investment activity in India has already seen a significant rise, increasing to about USD 5.4 billion in financial year 2024/2025 from nearly USD 1.3 billion in financial year 2021/2022. Imad Fakhoury, South Asia regional director at IFC, conveyed in an interaction that the institution continues to remain committed to its India strategy despite ongoing market uncertainties, and maintains a steady focus in line with India’s own growth trajectory.
India continues to hold the position of IFC’s largest investment destination globally, with an overall portfolio of around USD 10.3 billion as of the financial year ended June 2025. This exposure spans equity and debt investments across sectors including banking, housing finance, manufacturing and climate-linked businesses.
The organisation’s India portfolio includes investments in financial and real estate-linked companies such as Manappuram Finance, Federal Bank, PNB Housing Finance, TVS Emerald and agribusiness platform Leap Agri Silos. Equity investments now account for more than one-third of IFC’s total exposure in the country.
Alongside sectoral investments, IFC is also engaging with Indian state governments and urban local bodies to participate in the municipal bond market. The institution has signed multiple mandates across several states and is evaluating its role as an anchor investor to help mobilise private capital. The approach involves creating pooled bond structures to support cities with differing credit profiles in accessing funds. Municipal bonds, which are issued by local authorities to finance infrastructure such as roads and water supply systems, continue to remain an underdeveloped segment in India’s capital market ecosystem.
In September 2025, IFC had committed financing of USD 60 million for water and wastewater infrastructure projects in Visakhapatnam, marking its first direct lending engagement with an Indian city. This initiative is being considered as a replicable framework for expanding municipal commercial bond markets in the country.
Source Reuters
5th Jun, 2025
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