ADB, SK Finance team up for $100 million loan to boost women-owned MSMEs, EVs in India
ADB Director General for Private Sector Operations Suzanne Gaboury emphasized the project’s alignment with ADB’s strategic priorities, stating, “This project aligns with ADB’s strategic priorities by expanding access to finance for underserved segments, including women entrepreneurs, and facilitating the country’s transition to electric mobility. This will play a key role in reducing carbon emissions and improving air quality.”
MSMEs are a crucial part of the Indian economy, employing over 110 million workers and contributing 30% to the gross domestic product and 40% to exports. However, access to finance remains a significant challenge, particularly for women-owned businesses. The financing gap for MSMEs in India is estimated to exceed $1 trillion annually.
According to the release, the partnership also seeks to address India’s climate goals by promoting the transition to EVs. Transportation accounts for 12% of the country’s energy-related carbon dioxide emissions, and the rapid growth of the EV market, particularly two- and three-wheelers, presents a significant opportunity for reducing emissions and improving air quality. India can use EVs to reduce emissions, improve air quality, foster economic growth, and increase global competitiveness.