Skip to content

World Bank pledges US$1 Billion loan to India to support health sector

The World Bank loans will support India’s Pradhan Mantri-Ayushman Bharat Health Infrastructure Mission.

World Bank Signs a Billion Program to Support India's Health Sector for Pandemic Preparedness (Image - World Bank) 

In order to strengthen and improve India's healthcare infrastructure, the World Bank on Mar.3, agreed to grant two complimentary loans totaling US$500 million each. Rajat Kumar Mishra, additional secretary for the department of economic affairs, and Auguste Tano Kouamé, country director for India at the World Bank, signed the deal.

The funds will support India's Pradhan Mantri-Ayushman Bharat Health Infrastructure Mission (PM-ABHIM), which was launched in October 2021, a news release noted.

According to the World Bank, one of the loans will emphasize on the delivery of health services in seven states, including Andhra Pradesh, Kerala, Meghalaya, Odisha, Punjab, Tamil Nadu, and Uttar Pradesh, in addition to the national-level measures.

‌‌“The COVID-19 pandemic brought to the fore the urgent need for pandemic preparedness and health system strengthening around the world and was a stark reminder that pandemic preparedness is a global public good” said Auguste Tano Kouamé.

“The two Projects are supporting India’s decision to increase the resilience and preparedness of the country’s health systems against future pandemics. This will be of great benefit for the populations of the states participating in the projects and will generate positive spillovers for other states,” he added.

‌‌India's life expectancy, which increased from 58 in 1990 to 69.8 in 2020, is greater than the global average for the country's income level, according to World Bank's estimates.

‌‌Despite these improvements in the health of the Indian populace, the World Bank stated that COVID-19 has highlighted the necessity of reviving, reforming, and building capacity for fundamental public health functions, as well as for enhancing the caliber and comprehensiveness of health service delivery.

‌‌“The two Programs leverage the unique strengths of both the Center and the States to support the development of more accessible, high-quality, and affordable health services,” said Lynne Sherburne-Benz, the World Bank’s South Asia Regional Director for Human Development.