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  • Home
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  • DAILY CURRENT AFFAIRS:World Bank approves $1 billion loan for India’s health sector

World Bank approves $1 billion loan for India’s health sector

Tags: Economy/Finance

The World Bank has approved two complementary loans of $500 million each to support and enhance India’s health sector. 

Through this combined financing of $1 billion, the Bank will support India’s flagship Pradhan Mantri-Ayushman Bharat Health Infrastructure Mission (PM-ABHIM), launched in October 2021, to improve the public healthcare infrastructure across the country. 

In addition to the national level interventions, one of the loans will prioritize seven states including Andhra Pradesh, Kerala, Meghalaya, Odisha, Punjab, Tamil Nadu, and Uttar Pradesh.

The two loans, Public Health Systems for Pandemic Preparedness Program (PHSPP) and Enhanced Health Service Delivery Program (EHSDP), are designed to be complementary and transformational in impact, supporting the Government of India’s reform agenda to accelerate universal coverage, improve quality, and increase the resilience and preparedness of India’s health system.

Duration of Loan 

The loan will be provided by International Bank for Reconstruction and Development (IBRD) with a final maturity of 18.5 years including a grace period of 5 years.

Performance in Health Sector 

According to the World Bank India’s performance in health has improved over time. India’s life expectancy has improved to 69.8 in 2020, up from 58 in 1990.

 The under-five mortality rate (36 per 1,000 live births), infant mortality rate (30 per 1,000 live births), and maternal mortality ratio (103 per 100,000 live births) are all close to the average for India’s income level.

IBRD (International Bank for Reconstruction and Development)

  • It is an arm of the World Bank Group.
  •  It is the largest development bank in the world.
  • It provides loans to the middle income and low income countries to reduce poverty and promote sustainable development.

Headquarters: Washington D.C, United States 

Member Countries: 189

World Bank President: David Malpass

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