The Japan has committed an Official Development Assistance (ODA) loan of JPY 275.858 billion (approximately Rs 16,420 crore) to India for four key projects across urban transport, healthcare, and agriculture sectors.

The agreement was formalised on March 24, 2026, with the exchange of notes between Alok Tiwari, Joint Secretary, Department of Economic Affairs, Ministry of Finance, Government of India, and Keiichi Ono, Ambassador of Japan to India. Loan agreements were also signed with the Japan International Cooperation Agency (JICA).

The projects include the Bengaluru Metro Rail Project (Phase 3), Mumbai Metro Line 11, strengthening of tertiary healthcare and medical education systems in Maharashtra, and promotion of sustainable horticulture in Punjab.

The metro projects in Bengaluru and Mumbai aim to expand mass rapid transit systems to address rising traffic demand, reduce congestion, and lower pollution levels. The healthcare project in Maharashtra focuses on improving access to quality medical care through the development of tertiary care infrastructure and medical education institutions, contributing to universal health coverage.

Meanwhile, the Punjab horticulture project aims to boost farmer incomes by promoting high-value crops, improving infrastructure, and strengthening the agricultural value chain, while supporting sustainable development.

This funding further strengthens the long-standing economic cooperation and strategic partnership between India and Japan, which has been a key pillar of bilateral relations since 1958.