The Small Industries Development Bank of India (SIDBI) and Agence Française de Développement (AFD), France, have signed a $100 million credit facility agreement to enhance green finance solutions for micro, small, and medium enterprises (MSMEs) in India. Under the agreement, AFD will extend a $100 million credit line to SIDBI, which will be utilised to provide MSMEs with access to affordable financing for energy-efficient technologies, renewable energy solutions, and climate-friendly business practices.
The initiative leverages AFD’s global experience in climate finance and SIDBI’s expertise in the MSME ecosystem. Furthermore, the partnership also supports India’s broader commitment to achieving carbon neutrality by 2070 and complements AFD’s ongoing work on the Greening Indian Financial System (GIFS) platform, which focuses on integrating sustainability and climate perspectives into financial strategies, particularly within public sector development finance institutions.
Since its establishment in 1990, SIDBI has played a key role in supporting MSMEs across various sectors through an integrated and inclusive approach. The institution has facilitated access to credit and development initiatives for a diverse range of businesses, including traditional enterprises, small-scale domestic industries, and technology-driven startups.
