India receives US$1.5 billion World Bank backing for structural reforms targeting the 11 million young people entering its labour market each year.
The financing, under the Boosting Job Creation in the Private Sector Development Policy Financing operation, supports business environment reforms including tax simplification, trade integration, and updated labour laws.
India's employment figures have shown substantial growth, rising from 452 million in 2017-2018 to 604 million in 2023-2024, with approximately 9 million women entering regular wage employment over the same period.
In November 2025, the Indian government consolidated 29 separate labour laws into four comprehensive labour codes, streamlining compliance and modernising provisions while aiming to protect workers' rights.
The operation targets three areas: enhancing the business-enabling environment, advancing trade and investment openness, and mobilising private capital for firm expansion and job creation.
"India is well paced in its reforms agenda to unlock private capital and create jobs in a challenging global context," said Johannes Zutt, World Bank Vice President for South Asia.
The financing complements recent IFC investments including US$97 million in Aditya Birla Capital, US$100 million in L&T Finance, and US$150 million in HDB Financial Services to support MSMEs and underserved borrowers.
India's economy faces headwinds from the Middle East conflict and tighter global financial conditions. The World Bank said the financing helps maintain reform momentum and strengthen economic resilience amid external pressures.
Sources: worldbank.org
