Japan extends Rs 2129 crore financial assistance to India to mitigate COVID-19's socio-economic impact

Japan extended around Rs 2,129 crore financial assistance in the form of loan to India to mitigate the socio-economic impact of the COVID-19 crisis.

New Delhi: Japan on Friday (January 8) extended a 30 billion yen or around Rs 2,129 crore financial assistance in the form of loan to India to mitigate the socio-economic impact of the COVID-19 crisis.

Both sides exchanged the notes for the "COVID-19 Crisis Response Support Loan for Social Protection" in Delhi with Japan being represented by its envoy Suzuki Satoshi, and the Indian side by Additional Secretary, Department of Economic Affairs of the Ministry of Finance, Dr C. S. Mohapatra.

The loan will also be used to ensure social protection for the vulnerable affected by COVID-19. In the past as well, Japan has extended financial assistance to New Delhi to deal with COVID crisis.

An official of the Embassy of Japan in India explained to WION, "This yen loan is a budget support to assist the Government of India’s policy objectives...allowing a higher degree of flexibility for the Government of India to make effective responses to the emergency situation."

In August 2020, Japan had provided Appx Rs 3549 COVID emergency loan to support is for the implementation of health and medical policy by the Indian govt. A loan was also provided for Oxygen generators worth Rs 71 crore. Tokyo has provided assistance through international organizations like UNDP, UNICEF, UNHCR and IFRC. The loan amounts to around Rs 52 crore.
Together with the new loan announced on friday, Japan’s COVID-19 related assistance to India amounts to more than INR 5,800 Crore.

The official highlighted, "We hope this assistance will lead to the mitigation of socio-economic impacts of COVID-19 and to the higher resilience of India’s societies, helping India, a trusted partner and close friend of Japan, emerge even stronger after the pandemic. "