The Government of Japan has committed an Official Development Assistance (ODA) loan of JPY 275.858 billion (approximately Rs 16,420 crore) to India for four major projects spanning urban transport, healthcare, and agriculture sectors. The projects will be implemented across the states of Punjab, Karnataka, and Maharashtra, according to an official statement from the Ministry of Finance dated March 27, 2026.
Agreements Signed Between India and JICA
The exchange of notes took place on March 24, 2026, 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 between the Government of India and the Japan International Cooperation Agency (JICA), according to the Ministry.
Key Projects and Fund Allocation
The funded projects include the Bengaluru Metro Rail Project (Phase 3) (I), with an allocation of JPY 102.480 billion, and the Mumbai Metro Line 11 Project (I), with JPY 92.400 billion. Additionally, JPY 62.294 billion has been earmarked for strengthening tertiary healthcare delivery, as well as medical and nursing education systems, in Maharashtra, while JPY 18.684 billion will support sustainable horticulture development in Punjab.
Bengaluru Metro Rail Project
The Bengaluru Metro Phase 3 project aims to address rising traffic demand in the Bengaluru Metropolitan Region by expanding the city’s mass rapid transit system. It is expected to boost regional economic development, improve urban living conditions, and contribute to climate change mitigation by reducing congestion and vehicular pollution.
Mumbai Metro Line
Similarly, the "Mumbai Metro Line 11 Project (I) aims to cope with the increase of traffic demand in Mumbai by expanding the mass rapid transportation system, thereby promoting regional economic development, improving urban environment and eventually mitigating climate change, through relief of traffic congestion and decrease of pollution caused by increasing motor vehicles," the Ministry added.
Healthcare in Maharashtra
In the healthcare sector, the Maharashtra project focuses on improving access to quality medical services through the development of tertiary care facilities, medical colleges, hospitals, and nursing institutions. The initiative is expected to strengthen the state’s healthcare infrastructure and advance India’s goal of achieving Universal Health Coverage (UHC).
Punjab Horticulture Project
The Punjab horticulture project aims to promote sustainable agricultural practices by encouraging farmers to diversify into high-value crops. It also emphasizes infrastructure development, strengthening value chains, and capacity building, thereby supporting environmental sustainability and enhancing farmers’ incomes. "This shall leverage environmental conservation and sustainable socio-economic development in Punjab," the Finance Ministry added.
Partnership between India and Japan
The Ministry further stated that India and Japan have shared a long-standing partnership in development cooperation since 1958. "Economic Cooperation, a key pillar of India-Japan relations has steadily progressed in the last few years."
Economic collaboration remains a cornerstone of bilateral relations, and this latest financial commitment is expected to further strengthen the strategic and global partnership between the two nations.
