GoI signs $500 mn loan agreement with World Bank to promote MSME growth
Government of India has signed a loan agreement with World Bank for the aid of $500 million for Small Industries Development Bank of India (SIDBI) for MSME growth innovation and inclusive finance project.
The project aims to promote growth in Micro, Small and Medium Enterprises (MSME) sector and thereby generate employment with an eye on the following 3 components:
- Spurring early stage and risk capital finance
- Supporting service sector financing models and
- Supporting finance to manufacturing MSMEs
The implementation period of the loan is 5 years and Small Industries Development Bank of India (SIDBM) acts as the implementing agency.
The project particularly benefits SIDBI by improving its financial and institutional capacity in the areas of early stage, service and manufacturing sector financing, and also supports other Participating Financial Institutions (PFIs).
The loan agreement for the MSME Growth Innovation and Inclusive Finance Project was signed by Tarun Bajaj, joint secretary, department of economic affairs, ministry of finance, on behalf of the government of India; Kshatrapati Shivaji, chairman and managing director, SIDBI; and Onno Ruhl, World Bank Country director in India, on behalf of the World Bank.