International Finance Corporation is preparing to significantly expand its investment footprint in India, reinforcing the country’s position as its largest global market.
As per Reuters report, the development finance institution plans to increase its annual investments in India to $10 billion by 2030. This marks a sharp rise from about $5.4 billion invested in 2024–25 and a substantial jump from approximately $1.3 billion deployed in 2021–22.
Imad Fakhoury stated that the organisation remains committed to its India strategy despite global uncertainties, emphasising that both IFC and India are continuing on a consistent growth path.
India currently represents IFC’s largest investment destination worldwide, with a portfolio of around $10.3 billion as of the financial year ending June 2025. These investments span both equity and debt, with equity accounting for more than one-third of the portfolio.
The institution has backed a wide range of sectors in recent years, including renewable energy, urban infrastructure, financial services, manufacturing and climate-linked businesses.
Key investments include financial institutions such as Manappuram Finance, Federal Bank and PNB Housing Finance. In real estate, it has invested in TVS Emerald, while in agribusiness it has supported Leap Agri Silos.
Beyond corporate investments, IFC is actively engaging with Indian states and urban local bodies to expand financing through municipal bonds. These instruments are used by local governments to fund infrastructure projects such as roads and water supply systems.
The organisation is exploring a model where it can act as an anchor investor, helping to mobilise private capital. It is also working on pooled bond structures, allowing multiple cities, including those with varying credit profiles, to collectively raise funds and attract investors.
In September 2025, IFC committed $60 million for water and wastewater infrastructure projects in Visakhapatnam, marking its first direct lending to an Indian city. This initiative is expected to serve as a replicable model for expanding municipal bond financing in the country.
The municipal bond market in India remains underdeveloped, and IFC’s efforts are aimed at strengthening this segment and improving access to long-term infrastructure funding.
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IFC’s planned investment expansion highlights its long-term confidence in India, with a dual focus on scaling capital deployment and developing new financing mechanisms to support infrastructure and economic growth.
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Published on: Apr 25, 2026, 10:47 AM IST
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