The World Bank approves a $1 billion social protection package to India.

The World Bank approves a $1 billion social protection package to India.

The World Bank approves a $1 billion social protection package to India.

The World Bank comes forward to support India’s efforts to provide assistance to the poor. On Friday, the World Bank approves $1 billion ‘Accelerating India’s Covid19 Social Protection Program’. This amount is to help the vulnerable section of the country who are severely hit by the pandemic.

Junaid Ahmad, World Bank Country Director in an interview says that this amount will be available for use from Monday. He also says that due to the coronavirus pandemic across the globe, the governments have to respond by introducing lockdowns and social distancing in their respective countries.

“I think PMs ‘Atmanirbhar mission is very important in terms of directions. India is not making distinction between life and livelihoods in the aftermath of Covid-19,” says Junaid Ahmad.

World Bank’s Commitment.

After the approval of $1 billion by the World Bank today for emergency Covid19 response in India, the commitment of the World Bank totals to $2 billion for India.

The World Bank announced $1 billion support to Indian health sector last month. The economies around the world are facing a grim challenge currently. India’s condition is no different as it is experiencing the world’s largest lockdown.

Division of $1 Billion.

Out of the $1 billion support, the World Bank’s concessionary lending arm, the International Development Association will finance USD 550 million by a credit. Further, the International Bank for Reconstruction and Development will loan USD 200 million with a final maturity of 18.5 years. It will also include a grace period of five years.

Remaining amount of USD 250 million will be available for use after June 30, 2020. The main focus behind this support is to enable India to integrate all of its 400+ social security schemes.

“The project will be crucial to rebalance social security towards urban poor, as much as rural,” says Junaid Ahmad.

The World Bank lauds PM Modi.

According to World Bank officials, this collaboration has an aim to help the poor so that they don’t have to face problems. To help the poor to access the social schemes without running here and there.

“The World Bank says the support in collaboration with the government is aimed at integrating platforms. So that people should not have to run around from one place to another to access a myriad of social schemes,” says an official.

“The billion-dollar support of World Bank for social protection will help India leverage its PM Garib Kalyan Yojana,” says Ahmad.

World Bank lauds PM Modi’s ‘Atmanirbhar Abhiyan’ and his efforts to help the poor. This social protection package for India is to help central government’s programmes.

Nidhi Shree

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