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SIDBI & AFD Sign USD 100 million Agreement to Boost Green Finance for Indian MSMEs

Published on February 14, 2025

Current Context: The Small Industries Development Bank of India (SIDBI) and Agence Française de Développement (AFD) signed a USD 100 million credit facility agreement on February 13, 2025. 

SIDBI & AFD Sign USD 100 million Agreement to Boost Green Finance for Indian MSMEs

  • The agreement aims to scale up green finance solutions for Indian micro, small, and medium enterprises (MSMEs).
  • AFD will provide a credit line of USD 100 million to SIDBI to expand access to affordable financing for MSMEs investing in energy-efficient technologies, renewable energy solutions, and climate-friendly business practices.
  • This initiative aligns with India's commitment to achieving carbon neutrality by 2070.

Question:

1. What is the primary objective of the USD 100 million credit facility agreement signed between SIDBI and AFD on February 13, 2025?
a)To promote financial inclusion among Indian farmers
b) To scale up green finance solutions for Indian MSMEs 
c) To provide direct subsidies to MSMEs for infrastructure development 
d) To support large-scale industries in reducing carbon emissions 

Answer: b) The agreement between SIDBI and AFD is focused on expanding access to affordable financing for MSMEs investing in energy-efficient technologies, renewable energy solutions, and climate-friendly business practices.
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