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Business News/ News / India/  India to get $1 billion from World Bank: Here’s how it will be spent
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India to get $1 billion from World Bank: Here’s how it will be spent

The World Bank has committed $1 billion to India.

India's hospital industry accounts for 80% of the country's healthcare market.Premium
India's hospital industry accounts for 80% of the country's healthcare market.

On March 3, the World Bank and India signed two complementary loans of $500 million each to support the country's healthcare infrastructure. The agreement was signed by Rajat Kumar Mishra, Additional Secretary, Department of Economic Affairs, and World Bank India Country Director, Auguste Tano Kouamé.

The World Bank statement emphasised that the COVID-19 pandemic highlighted the need for pandemic preparedness and health system strengthening worldwide. The two projects aim to increase the resilience and preparedness of India's health systems against future pandemics.

India's hospital industry, which accounts for 80% of the country's healthcare market, is experiencing a surge in demand from both domestic and global investors. Government estimates project that the industry will grow from $61.8 billion in 2017 to $132 billion by 2023, at a compound annual growth rate (CAGR) of 16-17%.

Also Read: World can learn from digital systems India has created for health care, Bill Gates says

The combined financing of $1 billion (about 8,200 crore) will primarily support India's flagship Pradhan Mantri-Ayushman Bharat Health Infrastructure Mission (PM-ABHIM) launched in October 2021.

Focus on seven states

The loans will prioritise health service delivery in seven states: Andhra Pradesh, Kerala, Meghalaya, Odisha, Punjab, Tamil Nadu, and Uttar Pradesh. Alongside national-level interventions, these loans aim to improve public healthcare infrastructure across India.

Improvements in Indian health

According to World Bank estimates, India's life expectancy has improved over time, rising to 69.8 in 2020 from 58 in 1990, and is higher than the average for the country's income level. Furthermore, the under-five mortality rate, infant mortality rate, and maternal mortality ratio are close to the average for India's income level, reflecting significant achievements in access to skilled birth attendance, immunisations and other priority services.

Core public health functions

Despite the improvements in the health of the Indian population, COVID-19 has highlighted the need for revitalising, reforming, and developing capacity for core public health functions. The loans will help improve the quality and comprehensiveness of health service delivery in India.

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Sounak Mukhopadhyay
Sounak Mukhopadhyay, who also goes by the name Sounak Mukherjee, has been producing digital news since 2012. He's worked for the International Business Times, The Inquisitr, and Moneycontrol in the past. He's also contributed to Free Press Journal and TheRichest with feature articles. He covers news for a wide range of subjects including business, finance, economy, politics and sports. Before working with digital news publications, he worked as a freelance content writer.
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Updated: 04 Mar 2023, 12:32 PM IST
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