World Bank Support India’s Informal Working Class
Source : Indian Express
International Relation
What we discuss under World Bank Support India’s Informal Working Class ?
- Details of Funding
- About World Bank Group
Why in News ?
World Bank has approved a USD 500 million (about Rs 3,717.28 crore) loan programme to support India’s informal working class to overcome the current pandemic distress.
Key Facts
- The loan will create greater flexibility for states to cope with the ongoing pandemic, future climate and disaster shocks.
Photo by Ibrahim Boran on Unsplash - The funds will be utilised in social protection programme for urban informal workers, gig-workers, and migrants.
- Social protection is aimed at building the resilience of economies and livelihoods of communities.
- Of the USD 500 million commitment USD 112.50 million will be financed by its concessionary lending arm International Development Association and USD 387.50 million will be a loan from International Bank for Reconstruction and Development (IBRD).
- The loan has a maturity period of 18.5 years including a grace period of five years.
- Its total funding towards strengthening India’s social protection programmes to help the poor and vulnerable households since the start of the pandemic stands at USD 1.65 billion (about Rs 12,264.54 crore).
- First two operations approved last year provided immediate emergency relief cash transfers to about 320 million individual bank accounts identified through pre-existing national social protection schemes and additional food rations for about 800 million (80 crore) individuals.
- Support for Street Vendors
- Street vendors are an integral part of India’s urban informal economy.
- The programme will give street vendors access to affordable working capital loans of up to Rs 10,000.
- Urban Local Bodies (ULBs) will identify them through an IT-based platform.
- Five million urban street vendors could benefit from the new credit programme
World Bank Group
- It is one of the world’s largest sources of funding and knowledge for developing countries.
- Its commitment is to reducing poverty, increasing shared prosperity, and promoting sustainable development.
- It has 189 member countries.
- India is also a member country.
- Key Focus of the Group
- By reducing the share of the global population that lives in extreme poverty to 3 percent by 2030.
- By increasing the incomes of the poorest 40 percent of people in every country.
Daily Current Affairs : Click Here