'We hope to increase the risk appetite of companies to go to lower income states'

Karin M. Finkelston, Vice President, Asia Pacific, International Finance Corporation (IFC) spoke to Shweta Punj about the World Bank arm's priorities for India and the challenges the country faces. Edited excerpts:

On IFC's priorities: We are focusing on the low income states. In financial year 2012/13, IFC committed itself to 39 projects in India with a total financing of $1.4 billion. In the low income states, IFC committed $270 million for 10 projects. Another $360 million was committed for 20 climate-friendly projects on the investment side. The big issues are inclusion, access to infrastructure, power, and water. We are focusing on solar solutions on the sustainability side and trying to link agriculture to agri businesses. IFC can play a counter-cyclical role.

On role of the private sector: India has a strong private sector. The more we energise the private sector to become part of development solutions for India, (the better). It is already happening, but we hope we can increase the risk appetite of companies to go to the lower income states and try out innovative models, such as the things that are going on in solar energy. We are also taking lessons learnt from Indian companies outside India.  India is facing challenges in growth momentum and IFC can play a role in creating jobs, infrastructure and creating inclusive growth.

On skills and jobs:  The biggest challenge for India is infrastructure. Its advantage is its young population. We see infrastructure (development) playing a key role in creating jobs. One (priority) is creating jobs, another is to make sure the population is suitably skilled to take up the jobs. Another key area for us in India is vocational education. There is a key role for the private sector as an absorber of students who go to these types of schools.