Promoting sustainable private sector development

IFC in India

IFC in India Long term partner – first investment in India in 1958

Regional hub for South Asia (including Bangladesh, Bhutan, Maldives, Nepal, Sri Lanka)

Offices in India - Delhi, Mumbai, Chennai and Kolkata

Cumulative IFC Investments, India - March 2010 ($ 6.8bn)

IFC Committed Portfolio , India – December 2010 ($3.6b)

IFC’s Investments in India

• 1950-60: Kirloskar Oil Engines• 1970: HDFC, Zuari Industries, etc.• 1980: Ashok Leyland, Mahindra & Mahindra, Tata steel,

etc.• 1990: Moser Baer, IDFC, Jet Airways, GVK, etc.• 2000: Apollo Tyres, Dabur Pharma, ING Vysya, TVS

Motors, Cairn India, etc• 2010: Central Bank of India, WEG, Auro Mira and

Utkarsh Microfinance

What are we doing in India today?

Support Indian government to meet infrastructure finance needs

Encourage private investments in low-income states

Increase access to finance in under-served segments

Support to industrial sector, engineering, automotive components

Focus on agribusiness

Encourage energy efficiency, cleaner production, renewables

Helping Indian companies grow outside India: take Indian

companies abroad – IFFCO, Tata Steel

Promote trade finance, eg: EXIM Bank

Environment & Social Sustainability

Access to Finance

Business Environment

Public-Private Partnerships

Enterprise Assistance

What defines IFC’s work in India… Partner central and state governments on their infrastructure development goals;

advise on PPP transactions

Helping central and state governments undertake reform to improve investment climate

Encourage energy efficiency, cleaner production

Helping Indian companies adopt high environmental and social standards

Sharing corporate governance best practices

Stimulate community integration support to investment clients

Support to small and medium enterprises

Improve availability of finance to SMEs

Provide training support to SMEs to strengthen operations, develop business skills

Share costs with key stakeholders for sustained impact

Measure reach and focus on results

India’s context and IFC’s strategic role

• Clean production, energy efficiency, • Renewable energy• Adaptation •

Economic Inclusion

Clean Growth

Global Integration

• Focus on inclusive (Base of the Pyramid),

• low income states of India, rural/ semi-urban in rest

• Infrastructure finance & PPPs

• Trade finance

• South South projects

• Innovative India models

IFC’s investment + advisory priorities as part of WB Group

Achieving rapid, inclusive growth

Ensuring development is sustainable

Increasing effectiveness of service delivery

INDIA Commitments and Mobilization FY 06-FY10

•millions

Supporting Small Entrepreneurs in High Priority States in India

Au Financers

Non banking financial corporation in Rajasthan

Provides financial assistance to low income, self employed, small entrepreneurs

Making credit accessible for micro and small enterprises

Key Outcomes

Expect to reach 180,000 small borrowers in the next five years

IFC’s initiative provides growth opportunities to the underserved in low income states

Powering Remote Villages in High Priority States

Husk Power

The company converts locally available rice husk waste to electricity

Makes available economical, efficient and environment friendly power option

Provision of basic communication, education and healthcare infrastructure

Key Outcome

Impacting the people at the base of the pyramid and commercial establishments through affordable electricity

Reduction in crime rate due to availability of electricity

Making financial services accessible to the underserved

Key Outcomes

Over 17 million customers from low income households enrolled

2.85m Deposit accounts opened

FINO

Provide smart card solutions for expanding access to financial services for the unbanked

Working with 20 banks, 10 MFIs, 4 Insurance companies, and 9 Government bodies

$ 4 Million IFC equity investment

FT award for Global BoP Bank 2010

$ 1 million advisory project for : Developing business model Capacity building of extension agents Piloting testing Monitoring and Evaluation systems

Promoting Adoption of Water Conservation Practices

Jain Irrigation

Global Agricultural Practices (GAP) modified to adapt Indian conditions

Pilot operational among onion and mango growers

Water footprint initiative to audit and conserve water

Key Outcomes 1000 farmers covered under Jain GAP; to be scaled-up to cover more than

4000 farmers over three years to be recognized by GLOBAL GAP as

an entry standard

Healthcare through Public Private Partnership

AP Healthcare

Upgradation of diagnostic services at medical colleges in Andhra Pradesh

Development of a comprehensive policy framework to improve availability of quality and affordable health care

Meghalaya Healthcare

• Development of a hospital and a medical college

• Creating professional employment opportunities for the locals

Key Outcomes

Affordable and accessible healthcare for low income groups

Addresses the critical shortage of trained medical and paramedical staff

Expanding access to affordable medical services

Going forward, IFC will continue focus on…

addressing barriers to inclusive growth

enabling environment for investments in low income states

ramp up PPP advisory for infrastructure services

enhancing access to irrigation, drinking water, health and education sectors

Thank you