Ifc Hopes To Invest $ 200 Million By June

The International Finance Corporation (IFC) yesterday said it hoped to invest about $200 million in India during the year up to June 2000. Investments by IFC in the corresponding period last year was lower at $50 million owing to economic sanctions imposed against India.

The private sector investment arm of the World Bank also plans to shift its focus from manufacturing industries to small and medium enterprises (SMEs), pharma companies and information technology start ups, said Peter Woicke, executive vice president, IFC, at a press conference. IFC has equity stakes in several companies including two private sector banks.

"We are shifting our focus now as our services are not needed in manufacturing sector. We would like to focus on those sectors in which private sector is not comfortable to invest," he said.

 

IFC's exposure in India, that was hit in the last two years by economic sanctions following the Pokhran nuclear blasts, was likely to "increase rapidly" in the next few years, Woicke said.

He said IFC was keen on investing in infrastructure and software companies involved in healthcare and education, and added the corporation was talking to a Bangalore-based interactive software company for picking up stake.

Woicke also said IFC was talking to a number of insurance companies to pick up stake. "Insurance sector is very important in building capital market and corporate bond market," he said.

"We are a development bank. India is a shareholder. We would like to invest in projects, which is in the best interest of India. If our investments are needed in the insurance sector, then we would do so," he said.

He said there had been a marked change in the Indian business climate, and forecast that India might reach a point in about ten years when it may not require the services of IFC.