Press Information Bureau

Government of India

Ministry of Finance

22-May-2012 19:30 IST

As per present norms of IDA, when a country’s GNI per capita exceeds an operational cut off and remains above that for 2 years, the process for its graduation from IDA is triggered. The formal process of such graduation begins only in a Mid Term review of an IDA cycle. This formal process has not yet begun for India. Therefore, at this stage, developments with regard to these issues cannot be predicted.

This information was given by the Minister of State for Finance, Shri Namo Narain Meena in written reply to a question in Rajya Sabha today.

DSM/Hb

IDA graduation triggered by sustained GNI per capita breach, with formal process commencing only at Mid-Term review. Eligibility for IDA concessional lending is triggered when a country's GNI per capita exceeds an operational cutoff and remains above it for two consecutive years, but the formal graduation process is initiated only during a Mid-Term review of an IDA cycle; at the time of the statement the formal process had not begun for India and future developments could not be predicted.