The Small Industries Development Bank of India (SIDBI) has signed a $100 million credit facility agreement with the French Development Agency (AFD) to enhance green financing for India’s micro, small, and medium enterprises (MSMEs). The initiative aims to support MSMEs in adopting energy-efficient technologies and renewable energy solutions while contributing to India’s climate goals.
Strengthening Green Finance for MSMEs
Under the agreement, AFD will provide SIDBI with a $100 million credit line, enabling the institution to expand financing options for MSMEs investing in sustainable business practices, clean energy, and climate-friendly technologies. This move aligns with India’s long-term sustainability targets and the global push towards a low-carbon economy.
SIDBI Chairman Manoj Mittal highlighted the significance of the partnership, stating:
“This collaboration strengthens our commitment to India’s Net Zero aspirations. By supporting MSMEs in their transition towards sustainability, we are fostering an inclusive and green economic future.”
Leveraging Global Expertise for Climate Action
AFD’s India Country Director, Lise Breuil, emphasized the role of MSMEs in achieving India’s climate commitments:
“This credit line will empower MSMEs to embrace sustainable solutions, reinforcing India’s path towards carbon neutrality by 2070. It complements our efforts under the Greening Indian Financial System (GIFS) platform, which integrates sustainability into financial strategies.”
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Driving Sustainable Growth
The partnership reflects the increasing role of climate finance in promoting inclusive economic growth. By leveraging the AFD credit facility, SIDBI plans to provide long-term financial solutions that encourage MSMEs to adopt cleaner technologies, improve energy efficiency, and minimize their carbon footprint.
With India’s growing focus on green infrastructure and renewable energy, this initiative is expected to enhance climate resilience within the MSME sector, ensuring a sustainable economic transition.