The World Bank will extend two complementary loans of $500 million each to India to bolster public healthcare infrastructure in the country.

In a statement, the multilateral body said its combined financing of $1 billion will support India’s flagship Pradhan Mantri-Ayushman Bharat Health Infrastructure Mission (PM-ABHIM), launched in October 2021.

It said one of the loans will prioritise health service delivery in seven states—Andhra Pradesh, Kerala, Meghalaya, Odisha, Punjab, Tamil Nadu and Uttar Pradesh—in addition to the national level interventions. One of the loans will support efforts to prepare India’s surveillance system to better detect and report epidemics of potential international concern and ensure rapid response, among others. The other loan will support government efforts to bolster service delivery through a redesigned primary healthcare model.

World Bank India country director Auguste Tano Kouamé and additional secretary with the Department of Economic Affairs Rajat Kumar Mishra signed an agreement for the two loans on Friday.

The Covid-19 pandemic brought to the fore the urgent need for pandemic preparedness and health system strengthening around the world, said Kouamé.

The two projects are supporting India’s decision to raise the resilience and preparedness of the country’s health systems against future pandemics, according to the World Bank statement.

India’s performance on the health front has improved over time, according to the World Bank estimates. Life expectancy in India—at 69.8 in 2020, up from 58 in 1990—is higher than the average for the country’s income level. The under-five mortality rate (36 per 1,000 live births), infant mortality rate (30 per 1,000 live births), and maternal mortality ratio (103 per 100,000 live births) are all close to the average for India’s income level, reflecting significant achievements in access to skilled birth attendance, immunizations, and other priority services, according to the statement.