The Small Industries Development Bank of India and the French Development Agency, or AFD, have signed a $100 million credit facility agreement to expand green finance solutions for India’s micro, small and medium enterprises, the institutions said in a joint statement on Wednesday.
The funding aims to accelerate India’s transition to a low-carbon economy by enhancing access to affordable financing for MSMEs investing in energy-efficient technologies, renewable energy solutions, and climate-friendly business practices.
“At AFD, we are proud to support India’s transition towards a greener and more resilient economy. The $100 million credit line signed with SIDBI marks a crucial step in empowering MSMEs to invest in sustainable solutions,” said Lise Breuil, AFD’s Country Director for India. “MSMEs have a major role to play in India’s commitment to achieving carbon neutrality by 2070.”
SIDBI, India’s principal financial institution for MSMEs, will deploy the funds to promote long-term economic solutions for businesses looking to improve energy efficiency and reduce their carbon footprint.
“This partnership marks a significant step towards India’s national net-zero commitments,” said SIDBI chairman and managing director Manoj Mittal. “It strengthens our vision for a greener, more inclusive, and enterprising economy.”
The agreement underscores the increasing role of sustainable finance in driving economic growth and complements AFD’s broader efforts under the Greening Indian Financial System Platform, which integrates climate-focused strategies within Indian financial institutions.
The deal comes as India seeks to accelerate climate finance initiatives to support its goal of reducing emissions intensity by 45 percent from 2005 levels by 2030 and achieving net-zero emissions by 2070.
