The World Bank on Friday said it has approved a $1billion aid to support India’s efforts to provide social assistance to poor and vulnerable households severely impacted by the coronavirus pandemic and is in talks with the government for funding initiatives to assist micro, small and medium enterprises (MSME).

“The World Bank’s billion-dollar support for social protection will help India leverage its PM Garib Kalyan Yojana,” said Junaid Ahmad, World Bank country director in India, in a webinar interaction with the media.

He said the Indian government was in talks with the World Bank to fund its MSME programme — which will be the third financial package of the Bank.

This third package will focus on providing economic stabilisation and stimuli to small and medium enterprises in the country, which are hit by the the Covid-19 crisis.

Ahmad, however, declined to share details of the quantum of the fund to be provided by the Bank as it has not been finalised.

The Bank had last month announced a $1 billion support for India’s health sector.

The aid announced on Friday takes the total commitment from the World Bank towards emergency Covid-19 response in India to $2 billion.