World Banks Support To India – Economics

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Recently, the World Bank has approved USD 1 billion for accelerating India’s Covid-19 Social Protection Response Programme.
With this announcement, commitment from the World Bank towards emergency Covid-19 response in India has reached to USD 2 billion.
Earlier, a USD 1 billion support was announced in April to support India’s health sector.

Social Protection Response Programme

It is pivoted towards migrants, unorganised workers, informal sector, and creating an integration of the existing infrastructure of safety nets like the Public distribution system, Jan Dhan, Aadhar & mobile.
It will expand the coverage of India’s social protection system
Help vulnerable groups access to more social benefits directly and across the country.
Geographic portability would be introduced to ensure that social protection benefits could be accessed from anywhere in the country
Provide relief to inter-State migrant workers.
Support the Government of India’s efforts towards a more consolidated delivery platform accessible to both rural and urban populations across state boundaries.
Strengthen India’s federalism by enabling and supporting states to respond quickly and effectively.
Phased Implementation:
This new support will be funded and operated in two phases:
An immediate allocation of $750 million for fiscal year 2020 .
A $250 million second tranche that will be made available for fiscal year 2021.
First Phase:
It will be implemented countrywide through the Pradhan Mantri Garib Kalyan Yojana (PMGKY) to benefit vulnerable groups, particularly migrants and informal workers.
Second phase:
It would deepen the social protection package, whereby additional cash and in-kind benefits based on local needs will be extended through state governments and portable social protection delivery systems.

Unprecedented introduction of social distancing and lock downs due to Covid-19, to slow down the spread of the virus, have impacted economies and jobs especially in the informal sector.
Over 90% of India’s workforce is employed in the informal sector, without access to significant savings or workplace based social protection benefits such as paid sick leave or social insurance.
Over 9 million migrants, who cross state borders to work each year, are also at greater risk as social assistance programmes in India largely provide benefits to residents .
In an urbanising India, cities and towns need targeted support as its social protection programmes are focused on rural populations.
Social protection is critical when half of India’s population earns less than $3 a day and are close to the poverty line.