The Board of Executive Directors of the World Bank has authorized USD 1.5 billion in funding to support India's structural reforms that will accelerate economic growth and increase the creation of jobs led by the private sector.
It is anticipated that the funding, which is part of the Boosting Job Creation in the Private Sector Development Policy Financing (DPF) Operation, will support changes that will enable 11 million young Indians to enter the workforce over the course of the next 20 years.
The World Bank said in a statement on Monday that the program expands on recent reforms, such as trade integration, tax simplification, regulatory adjustments, and initiatives to enhance the business environment.

It further stated that the DPF supports efforts to lower obstacles to entrepreneurship, increase labor market participation, especially among women, simplify trade and investment procedures, and enhance enterprises' access to financing.
In order to simplify compliance, update out-of-date regulations, and provide a more effective framework for enterprises while safeguarding workers' rights, the government combined 29 labor laws into four comprehensive labor codes in November 2025.
Government estimates show that employment in India grew by more than 150 million jobs over a six-year period, from 452 million in 2017–18 to 604 million in 2023–2024. Almost 9 million women entered regular wage jobs at that time, and the jobless rate decreased from 6% to 3.2%.

It further stated that the DPF supports efforts to lower obstacles to entrepreneurship, increase labor market participation, especially among women, simplify trade and investment procedures, and enhance enterprises' access to financing.
In order to simplify compliance, update out-of-date regulations, and provide a more effective framework for enterprises while safeguarding workers' rights, the government combined 29 labor laws into four comprehensive labor codes in November 2025.
Government estimates show that employment in India grew by more than 150 million jobs over a six-year period, from 452 million in 2017–18 to 604 million in 2023–2024. Almost 9 million women entered regular wage jobs at that time, and the jobless rate decreased from 6% to 3.2%.According to the report, the changes are a reflection of India's transition to outcome-oriented governance that prioritizes long-term economic resilience, predictability, and transparency.
By enhancing the business environment, promoting private investment, and increasing productive employment possibilities, the operation supports the government's Viksit Bharat by 2047 vision and is in line with the World Bank Group's Country Partnership Framework for India for FY26–31.
It stated that the initiative will concentrate on three main areas: enhancing the business-enabling environment, encouraging trade and investment openness, and raising private capital for company growth and employment creation.

According to World Bank Vice President for South Asia Johannes Zutt, "India is well paced in its reform agenda to unlock private capital and create jobs in a challenging global context."
In order to improve credit availability for MSMEs and underserved communities, particularly women in rural and semi-urban regions, the DPF also supports recent investments made by the International Finance Corporation (IFC), the private sector arm of the World Bank Group.