“We all look to India now as a rising global economic power and in our interconnected world it has played a helpful role over the tough moments of the past year, not just during the discussions of the G-20, but also in how it has steered India's recovery,” said Zoellick at the conclusion of a four-day visit to India during which he discussed these issues with Prime Minister Manmohan Singh and Finance Minister Pranab Mukherjee.

He said India's growth rates could over the next one to two years see a return to the 8-9% envisaged in the country's 11th Plan, and that its strong fiscal and monetary policies had helped counteract a decline in exports and withstand some of the external shocks brought on by the multiple food, fuel and financial crises.

“India has emerged from the economic crisis with a clear vision of what it will take to accelerate back to earlier growth rates and beyond,” said Zoellick. “What is critical for the World Bank Group, as one of the country's development partners, is how we can play the most helpful possible role within the scope of our resource capabilities.”

Vast sums are needed to build the infrastructure and human development programs to power India's next generation of growth, he said, spelling out a vision of a “catalytic Bank” as a partner able to leverage not just its financial resources but knowledge, convening power and reputation.

“An emerging global economic power like India needs a catalytic World Bank Group that is smart at leveraging all its assets in the country's interests. We are honored to help and our best contribution will be to multiply what we can afford through innovative global partnerships across a broad canvas.”

The Bank has already delivered around $5.3 billion to India this fiscal year with commitments to power, roads, banking, rural development and water. Future resources will be aimed at supporting India's urban development, additional infrastructure needs in transport and power, elementary and secondary education, and development in agriculture and the rural sector. India became the largest portfolio last fiscal year for International Finance Corporation (IFC), the World Bank's private sector arm, at more than $3.4 billion. For the last three consecutive years, IFC's investment commitments in India have stood at around $1 billion, with a focus on improving access to infrastructure and finance and addressing climate change as central to its work.

Zoellick said his discussions with Indian ministers had revealed a dramatically increased demand from India for World Bank engagement and he hoped to respond with not just financing but also the Bank's ability to help India access global sources of knowledge and funding.

“It is not just a one-way street though. The world has a tremendous amount to learn from India and its progress in developing programs that reach poor people, especially across wide rural spaces.” He said some of the challenges, notably literacy rates, educational quality, nutrition and consistency of social service delivery remained stark for hundreds of millions of poor citizens, but India's reach into its countryside had grown impressively.

In the villages of Tonk District in Rajasthan yesterday, Zoellick met communities of men and women who have made the best of opportunities provided and got together to address their water needs. “This illustrated to me not only the acuteness of the need but also the tremendous energy of India's people to make the most of an opportunity,” said Zoellick.

Making more of these sorts of opportunities was the challenge that lay ahead, he said, naming several government projects designed to do this. In the areas of agriculture and rural development, the Bank plans to raise its commitment during 2009-12 to $5.3 billion, including $300 million from the IFC to support agri-business. This more than doubles the level of support provided in the previous three years. This funding will help to meet needs in the areas of irrigated agriculture, sustainable watershed management and rain-fed agriculture as well as the development of rural livelihoods. To achieve further impact, the Bank is increasingly scaling up from project investments towards supporting state and national programs in India such as the National Rural Livelihoods Mission or a proposed National Dairy Program.#