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Multilateral Institutions Division
India and The World Bank
India is a member of all the institutions of the World Bank Group except ICSID. India is one of the founder members of IBRD, IDA and IFC. World Bank assistance in India started from 1948 when a funding for Agricultural Machinery Project was approved. World Bank resident mission was established in India in 1957. In August 1958, the first meeting of the Aid India Consortium was held at Washington DC under the aegis of the World Bank. First investment of IFC in India took place in 1959 with US$ 1.5 million. India became a member of MIGA in January 1994.
India has an Executive Director, in the Board of Directors of IBRD / IFC / IDA/ MIGA. The Executive Director from India represents a constituency comprising of four countries: India, Bangladesh, Bhutan and Sri Lanka. Mr. M. N. Prasad represents India in the Board of Directors w. e. f. 30th September 2011. Mr. Kazi M. Aminul Islam from Bangladesh is currently the Alternate Executive Director for this constituency.
India's Shareholding
IBRD: In 2011-12, India purchased 5757 shares from IBRD. Consequently as on 30th March, 2012, India holds 50,552 shares amounting to US$ 6098.3 million. In the recent Capital Increase in IBRD (Spring Meetings, April 2010), India has been allocated additional 24,092 shares (through General Capital Increase and Selective Capital Increase). As a result India will become the 7th largest shareholder in IBRD with voting power of 2.91%. Before this revision, India's voting power was 2.77% with 11th position among shareholders. As a constituency (comprising of four countries - India, Bangladesh, Sri Lanka and Bhutan), India's voting power will increase to 3.26% from the present 3.14%. India has commenced its subscription of additional shares allocated following 2010 reforms.
IDA: India has 573,783 votes comprising 3.16%. However, as a constituency (comprising of four countries - India, Bangladesh, Sri Lanka and Bhutan), India has 802,820 votes comprising 4.44% of the total.
MIGA: India has 5,371 shares with a voting power of 2.56%. As a constituency India has 7207 comprising 3.30% of total voting power. Bhutan is not a member of MIGA and as such in MIGA the constituency comprises of other three countries.
IFC: India is currently holding 81,342 shares of IFC with a voting power of 3.38%. As a constituency India has 99,234 votes comprising 4.12% of total voting power. India has been allocated 21511 additional shares in IFC in the recent capital increase (Spring Meetings, April 2010)
World Bank Lending to India (IBRD and IDA)
India has been borrowing from the World Bank (through IBRD and IDA) for various development projects in areas of poverty alleviation, infrastructure, rural development, human resource development, etc. IDA funds are one of the most concessional external loans for GOI and are used largely in social sector projects that contribute to the achievement of MDGs. IBRD funds are semi - concessional and of a longer maturity and therefore, cheaper than commercial external borrowings. GOI utilizes IBRD loans primarily for infrastructure projects.
Since 1949 when India took the first assistance from World Bank, the Bank's cumulative commitment to India stands at US$ 91.91 billion {US$ 48.28 billion under IBRD and US$43.63 billion under IDA (up to 9th July, 2012)}. The commitments for the past 5 years (FY of GOI) have been as follows:
| Year | IBRD | IDA | Total |
|---|---|---|---|
| US $ Million | US $ Million | US $ Million | |
| 2007-08 | 1,932 | 1,243 | 3,175 |
| 2008-09 | 706 | 1,259 | 1,965 |
| 2009-10 | 5,881 | 1,616 | 7,497 |
| 2010-11 | 2,433 | 3,116 | 5,549 |
| 2011-12 | 2,869 | 2,848 | 5,717 |
Terms and Conditions of World Bank Lending to India
Current Terms and Conditions of World Bank Lending to India
IBRD Loans (Flexible Loan) - with Variable Spread option
IBRD IFL allows borrowers to customize the repayment terms (i.e. grace period, repayment period and amortization profile)
- Repayment period: Maximum final maturity - 30 years including initial grace period of 5 years (maximum). Maximum average maturity - 18 years
- Interest: LIBOR (6 month) + variable spread (Variable Spread over LIBOR is recalculated every January 1 and July 1 and also depends on the average maturity of the loan).
- Commitment charges on undisbursed amount: 0% p.a.
- Front End fee: 0.25%
IDA Credits (from 1 July 2011 onwards)
- Repayment period: 25 years including a grace period of 5 years
- Interest: 1.25%
- Commitment charges on undisbursed amount: 0% p.a. for FY 12 (July 2011-June 2012)
- Service Charges: 0.75% p.a.
Details of current loan offerings can be found at World Bank Treasury's website at
Repayment of principal amount with interest, based on the terms of the loan/credit agreement between the Government of India and the World Bank, is made by the Government six-monthly as per the amortization schedule of the loan/credit by keeping necessary provisions in the budget each year.