The agreements include a risk participation arrangement structured through Gujarat International Finance Tec-City (GIFT City) to support US dollar-denominated transactions, and a partial guarantee facility agreement to support onshore rupee transactions, ADB said in a statement on Wednesday.Together, the arrangements are intended to expand access to trade and supply chain finance for businesses operating in India and to support the continued flow of cross-border and domestic trade, it said.
The agreements were signed last week by ADB Vice-President Bhargav Dasgupta and Standard Chartered Bank’s India & South Asia Chief Executive Officer P D Singh.
Access to trade and supply chain finance remains a binding constraint for many businesses seeking to manage working capital, strengthen supply chain resilience, and participate in regional and global trade, it said.
The partnership extends ADB’s risk-sharing capacity into both offshore and onshore segments of the Indian market, addressing financing gaps that commercial provision alone has not been able to close, it said. A key feature of this partnership is its focus on emerging and underserved segments of supply chain finance, particularly distributor financing, it said, adding that the collaboration represents ADB’s first engagement in this space within the market. By enabling risk participation in distributor finance transactions, the partnership aims to unlock working capital for downstream players — often small and medium-sized enterprises (SMEs) — that play a critical role in domestic supply chains, it said.
This partnership aligns with ADB’s strategic priority to promote inclusive economic growth and financial deepening across Asia and the Pacific, it added.
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