JICA extends ODA loan of INR 1,336 crores for promoting start-up ecosystem and innovation in Telangana

~ Ushering in socio-economic development by innovation of women and rural entrepreneurs ~

Hyderabad, February 20, 2024: Japan International Cooperation Agency (JICA), today formalized a significant partnership by signing a Loan Agreement with the Government of India. The Japanese Official Development Assistance (ODA) loan, totaling JPY 23,697 million (approximately INR 1,336 crores), aims to empower the state government in addressing job creation and economic development challenges through innovative measures and the augmentation of the startup ecosystem in Telangana. This initiative is strategically designed to extend support not only to urban entrepreneurs but also to women and aspiring business leaders in rural areas, fostering inclusive economic growth. JICA is committing in line with its Sustainability Policy to promote diversity, equity and inclusion including gender equality, to create opportunities and an environment where diverse human resources can thrive and grow.

The loan agreement for the project was signed between Mr. Vikas Sheel, Additional Secretary, Department of Economic Affairs, Ministry of Finance and Mr. SAITO Mitsunori, Chief Representative, JICA India.

Marking a significant milestone, this project represents JICA’s maiden endeavor to support a state government in bolstering innovation and the startup ecosystem through an ODA loan. The primary objective of the project is to discover and promote potential entrepreneurs, including women and those in rural areas, by providing capacity building, infrastructure development, financial support, and market creation subprojects. The project will be addressed to each of the three enterprise growth stages of start-up ecosystem: “Finding Entrepreneurs,” “Support for Startups and Commercialization,” and “Support for Business Expansion.” JICA will play a pivotal role in facilitating Japanese startups to venture into Telangana, conducting Proof of Concept (PoC) for their businesses. The facilitation by JICA is anticipated to attract investments from Japanese companies, further enriching the collaborative landscape between Japan and India.

Speaking on this occasion, Mr. SAITO Mitsunori, Chief Representative of JICA India office said, “Our initiative to promote start-ups and innovation in Telangana aims to enhance socio-economic development in the region, in collaboration with Government of Telangana. I am very pleased to announce that this is the very first project in which JICA supports promotion of start-up ecosystem and innovation by ODA loan in the world. It further aligns with the Indian government’s “Startup India” policy, focusing on the creation of a conducive environment for entrepreneurship, innovation, and job growth. This project also aligns with the Free and Open Indo-Pacific Partnership (FOIP) Pillar of “Multi-layered Connectivity,” fostering collaboration between Japan and India in supporting startups and enterprises. JICA remains steadfast in its commitment to bolster India’s pursuit of innovation and growth, thereby contributing to the overall well-being of the people in Telangana.”

The project, to be led by the Information Technology, Electronics and Communications Department, Government of Telangana, underscores the robust partnership between Japan and India in enhancing the startup ecosystem in the country.

The figures are calculated with current exchange ratio: INR 1/- = JPY 1.7743700/-