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IFC to invest $500 mn in India

August 22, 2006 16:46 IST
Source:PTI
International Finance Corporation, the private sector financing arm of the World Bank Group, is likely to invest $500 million in India this fiscal.

Last fiscal (July-June), IFC exposure was over $400 million, this will appreciate by 25 per cent to about $500 million this fiscal, Colin J Warren, IFC South Asia portfolio manager said.

"The exposure of IFC in the South Asia last fiscal stood at $506 million, of which over $400 million was invested in India alone", he said.

He said the key sectors where investments look attractive are pharma, infrastructure, auto component, IT and biotechnology.

Biotechnology and pharmaceuticals are potential major growth sectors in India's economy. To support these emerging industries, IFC has invested in APIDC biology Fund, which will make equity and equity related investment in early-stages life science business, he said.

Warren said, IFC also made first investment in Bharat Biotec India Ltd, a company that develops, manufactures vacines and drugs.

Speaking on the economy, Warren said the economic condition in the country has improved vis-à-vis last year and IFC is very positive about the Indian economy.

The World Bank arm finances projects in the developing countries through loans, equity finance and quasi-equity.

It also offers financial risk management products and intermediary finances. Warren said, India faces huge challenge on infrastructure front. A lot of work needs to be done through public private partnership.
Source: PTI
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