Mumbai, 18 March 2025: Japan International Cooperation Agency (JICA) proudly announces the signing of a loan agreement with Shriram Finance Limited (Shriram) at a ceremony held in Mumbai. The loan is co-financed with Asian Development Bank (ADB) and Export-Import Bank of India (India Exim Bank). This milestone marks JICA’s first co-financing project in India with India Exim Bank and represents a significant step in strengthening cooperation with key financial institutions to support India’s socio-economic development.

JICA loan is designed to strengthen Micro, Small, and Medium Enterprises (MSMEs) involved in agriculture- and food-linked transportation. These enterprises, located primarily in rural and lagging states, are vital to addressing geographical disparities in India, where approximately 65% of the population resides in rural areas. By improving financial access for underserved communities, this initiative aims to enhance rural livelihoods, reduce poverty, and contribute to sustainable economic growth.

The loan aligns with India’s “Priority Sector Lending” policy, led by the Government of India and the Reserve Bank of India, which encourages lending to socially vulnerable groups. It also complements Japan’s global development agenda. Specifically, it reflects the former Prime Minister Fumio Kishida’s commitment, as announced at the G7 Hiroshima Summit in 2023, to promote sustainable development through two facilities: the “Facility for Accelerating Financial Inclusion (FAFI)” and the “Facility for Supporting Agricultural Supply Chain and Food Security Enhancement (SAFE).” These programs, with USD 1.5 billion and USD 1 billion in funding, respectively, aim to address global challenges such as financial inclusion and food security.

Speaking on the occasion, Shigeo Honzu, Deputy Director General, JICA Private-Sector Investment Finance Division, stated, “This project is a testament to the strong partnerships we have built with Shriram Finance, ADB, and India Exim Bank. I deeply appreciate the tireless efforts of our partners, which have brought us to this significant moment. This initiative will not only strengthen financial inclusion but also help address critical challenges such as rural poverty and the need for sustainable economic opportunities in India.”