UPSC Prelims Practice Questions — World Bank approves $1.5 bn support for India reform plan

Q1. The 'Boosting Job Creation in the Private Sector' Development Policy Financing operation approved by the World Bank for India in June 2026 is calibrated to address the entry of how many youth into India's labour market each year over the next two decades?

  • A. 6 million
  • B. 8 million
  • C. 11 million
  • D. 15 million

Q2. The $1.5 billion 'Boosting Job Creation in the Private Sector' Development Policy Financing for India announced in June 2026 was approved by which one of the following bodies?

  • A. Board of Governors of the International Monetary Fund
  • B. Board of Executive Directors of the World Bank
  • C. Board of Directors of the Asian Infrastructure Investment Bank
  • D. Board of Governors of the Asian Development Bank

Q3. In the context of the $1.5 billion support extended to India in June 2026, the term 'Development Policy Financing (DPF)' refers to which one of the following?

  • A. A results-based instrument under which disbursement is linked to the achievement of pre-agreed, independently verified output indicators
  • B. A project-tied loan instrument that finances specific civil-works contracts identified in a project appraisal document
  • C. A budget-support lending instrument under which funds are rapidly disbursed to the borrower's treasury in support of agreed structural and policy reforms
  • D. A non-lending guarantee instrument that insures private investors against political and non-commercial risks in member countries

Q4. Alongside the $1.5 billion sovereign Development Policy Financing of June 2026, which arm of the World Bank Group is extending approximately $589 million in complementary investments to financial institutions in India to support MSMEs and women-owned enterprises?

  • A. International Development Association (IDA)
  • B. International Bank for Reconstruction and Development (IBRD)
  • C. Multilateral Investment Guarantee Agency (MIGA)
  • D. International Finance Corporation (IFC)

Q5. With reference to the June 2026 'Boosting Job Creation in the Private Sector' operation for India and the earlier June 2023 'Low-Carbon Energy Sector' operation of the World Bank, consider the following statements: 1. Both operations were of the same approved size of $1.5 billion. 2. The 2026 operation is anchored in the India–World Bank Group Country Partnership Framework FY2026–2031, whereas the 2023 operation pre-dates this framework. 3. Unlike the 2023 operation, which used the Development Policy Financing window, the 2026 operation has been structured as an Investment Project Financing (IPF) loan. Which of the statements given above is/are correct?

  1. Both operations were of the same approved size of $1.5 billion.
  2. The 2026 operation is anchored in the India–World Bank Group Country Partnership Framework FY2026–2031, whereas the 2023 operation pre-dates this framework.
  3. Unlike the 2023 operation, which used the Development Policy Financing window, the 2026 operation has been structured as an Investment Project Financing (IPF) loan.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3
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