India and World Bank have recently signed a deal, according to which WB will issue a loan of $4.2 billion for the infrastructure projects as well as for re-capitalizing the public sector banks.

The deal was signed in the presence of the legislative bodies of the central government, Indian Infrastructure Finance Co. (IIFC), PowerGrid Corp and the World Bank.

The World Bank has approved $4.3 billion loan for India for the sake of projects designed to lift the country’s infrastructure and economics stimulus program.

Talking to media, Mr. Roberto Zagha, World Bank Country Director for India, said, “This is a crucial time to support India. While the worst of the crisis seems to be behind us, doubts linger about the strength of the comeback. Today's support will help maintain credit growth and continued infrastructure investments.”