Agreement between SIDBI and AFD

Why in news?

Small Industries Development Bank of India (SIDBI) and French agency AFD signed a $100 million credit facility agreement.

Key Points:

• The agreement will expand access to affordable financing for Indian MSMEs.
• The fund will be made available to MSMEs investing in energy-efficient technologies, renewable energy solutions, and climate-friendly business practices.

Small Industries Development Bank of India (SIDBI):

• It is a premier financial institution for the development and financial support of micro, small and medium enterprises (MSMEs) in India.
• It was established as a statutory body on 2 April 1990.
• It provides loans and financial services to small and medium industries in India at affordable rates.
• It finances under various schemes to promote innovation and startups.

French Development Agency (AFD):

• It is a public financial institution of the French government.
• It works to finance and support sustainable development projects in developing countries.
• It plays an important role in implementing France's development and international solidarity policies.