IFC to invest over US$4 bn, focus on climate finance

India is IFC's largest recipient of funding, with a total portfolio exposure exceeding $8 billion.

May 3, 2024

The emphasis on climate finance is driven by India's ambitious target of 500 GW of renewable energy by 2030 and its commitment to becoming a net-zero economy by 2070

Puliti praised India's sophisticated financial market and emphasized the institution's growing collaboration with local and international players in various sectors

He particularly highlighted the significance of continuous efforts in financial inclusion, especially in sectors like affordable housing and MSMEs

Regarding challenges, geopolitical developments are a major concern impacting the international economy and trade

The International Finance Corporation (IFC) plans to increase its investment in India to over $4 billion in the current financial year, a significant increase from the $1.3 billion invested two years ago. Riccardo Puliti, IFC’s regional vice president for Asia and the Pacific, has emphasized that climate finance will be a key focus area for future investments in India.

This year, nearly 41% of the total investment will be allocated to climate-related initiatives. The emphasis on climate finance is driven by India’s ambitious target of 500 GW of renewable energy by 2030 and its commitment to becoming a net-zero economy by 2070.

IFC’s investments in Mahindra and Mahindra, a major electric vehicle (EV) manufacturer, and its recent investment in battery technology company Napino highlight India’s potential as a leading force in batteries and EVs. India is IFC’s largest recipient of funding, with a total portfolio exposure exceeding $8 billion.

Puliti praised India’s sophisticated financial market and emphasized the institution’s growing collaboration with local and international players in various sectors. He stressed the importance of financial inclusion, digitalisation, infrastructure investments, and public-private partnerships in India’s development journey. He particularly highlighted the significance of continuous efforts in financial inclusion, especially in sectors like affordable housing and MSMEs.

Regarding challenges, geopolitical developments are a major concern impacting the international economy and trade. Additionally, concerns regarding high interest rates pose challenges in predicting future interest rate trends, particularly in the context of global economic dynamics and the policies of central banks.

Source: Economic Times

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