JICA to fund startups, innovation project in Telangana

The Japan International Cooperation Agency (JICA) has announced that it will fund a project to promote startups and innovation in Telangana. The project will be supported by an Official Development Assistance (ODA) loan of 23,697 million Japanese yen (approximately Rs 1,336 crore) to address job creation and economic development challenges through innovative measures and the augmentation of the startup ecosystem in the state.

The project is unique in its focus on discovering and promoting entrepreneurial skills, with an emphasis on women and the rural population, as well as supporting the business expansion of MSMEs. This ODA loan is part of a larger agreement between JICA and the Indian government for nine projects, totaling 232.209 billion yen.

The initiative is strategically designed to extend support not only to urban entrepreneurs, but also to women and aspiring business leaders in rural areas, in line with JICA’s sustainability policy to promote diversity, equity and inclusion. The loan agreement for the project was signed between Vikas Sheel, Additional Secretary, Department of Economic Affairs, Ministry of Finance and Saito Mitsunori, Chief Representative, JICA India.

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. JICA will also play a pivotal role in facilitating Japanese startups to venture into Telangana and conduct Proof of Concept (PoC) for their business.

Mitsunori, Chief Representative of JICA India, said: “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.”

The 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 committed to bolstering India’s pursuit of innovation and growth, thereby contributing to the overall well-being of the people in Telangana.