SIDBI and AFD, France Partner to Boost Green Finance for Indian MSMEs with USD 100 Mn Credit Facility The collaboration aims to promote sustainability by enabling MSMEs to transition towards energy-efficient technologies and climate-friendly business models.
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The Small Industries Development Bank of India (SIDBI) and Agence Française de Développement (AFD), France, have signed a USD 100 million Credit Facility Agreement (CFA) to strengthen green finance initiatives for India's micro, small, and medium enterprises (MSMEs).
The collaboration aims to promote sustainability by enabling MSMEs to transition towards energy-efficient technologies and climate-friendly business models.
Under the agreement, AFD will extend a USD 100 million credit line to SIDBI, allowing the financial institution to provide affordable loans to MSMEs for investing in renewable energy solutions, resource efficiency, and other environmentally sustainable practices. This initiative aligns with India's climate goals and supports the country's commitment to achieving carbon neutrality by 2070.
Lise Breuil, AFD Country Director for India, stated, "At AFD, we are proud to support India's journey toward a more resilient and greener economy. The credit line with SIDBI will empower MSMEs to make sustainable investments, reinforcing our broader work under the Greening Indian Financial System (GIFS) Platform." The GIFS initiative integrates sustainability considerations into the strategies of Indian financial institutions, particularly public sector development banks.
Shri Manoj Mittal, Chairman and Managing Director of SIDBI, highlighted the significance of the partnership in achieving India's Net Zero commitments. He remarked, "This collaboration marks a crucial milestone in our mission to foster a greener and more inclusive economy. Through this initiative, we aim to provide long-term financial solutions that encourage MSMEs to adopt cleaner technologies, improve energy efficiency, and minimise their carbon footprint."
SIDBI, established in 1990, has played a pivotal role in supporting MSMEs across India. The institution focuses on integrating innovative and inclusive financial solutions to drive economic development. With this new credit facility from AFD, SIDBI continues to strengthen its commitment to sustainable finance, reinforcing its role as a key driver of India's green growth agenda.
