Japan Announces Emergency Loan to India to Fight Covid-19 Pandemic | Latest India News
Japan announced Monday that it will extend an emergency support loan of up to 50 billion yen (nearly 3,500 crore rupees) to support India’s response to the Covid-19 crisis, including the implementation of health and medical policies and the development of hospitals equipped with intensive care units.
Japanese Ambassador Satoshi Suzuki and CS Mohapatra, Additional Secretary of India’s Department of Economic Affairs, exchanged notes regarding the granting of the yen loan for the response to the Covid-19 emergency.
A statement issued by the Japanese Embassy noted that the Indian government has taken several measures, including health sector reforms, in response to the spread of Covid-19. “This loan provides the funds necessary for an emergency response in the fight against Covid-19 in India,” he said.
This is the largest financial aid announced by a country to date to support India’s response to the Covid-19 crisis, which has had widespread impacts on the economy and the health sector.
The “Emergency Support Loan for the Response to the Covid-19 Crisis” will support the “implementation of health and medical policy by the Indian government and will lead to the development of hospitals equipped with intensive care units and ‘Infection prevention and management facilities, which are undersupplied in India,’ the statement said.
“It is also expected to lead to the improvement of telemedicine using digital technology in many villages across India. These measures, in addition to controlling the spread of infection in the country, are expected to also contribute to the recovery and stability of the country’s society and economy, as well as to sustainable development ” , adds the press release.
The terms and conditions of the loan include an interest rate of 0.01% per annum and a 15-year repayment period, including a four-year grace period.
Suzuki and Mohapatra also exchanged notes for granting a billion yen grant under Japan’s official development assistance program for India’s economic and social development program, which is implemented by the Ministry of Health.
“This program will provide oxygen generators to the Indian government. Oxygen generators can be used for the treatment of Covid-19 patients in critical conditions. This program will lead to strengthening India’s infectious disease countermeasures, as well as its health and medical systems, ”the Japanese Embassy said.
In a separate development, the Embassy and Consulates of Japan and the Japan Foreign Trade Organization (JETRO) have updated the list of Japanese companies in India with the cooperation of Japanese Chambers of Commerce and Industry in India.
In October 2019, the total number of Japanese companies registered in India was 1,454. The number increased by 13 (growth of 0.9%), up from 1,441 in 2018.
The total number of Japanese business establishments in India as of October 2019 was 5,022, a decrease of 80 (1.6% decrease) from 5,102 in 2018.
West Bengal and Haryana saw the largest increase in the number of Japanese companies. There has been a significant increase in the number of businesses in sectors such as information and communications as well as services.
The manufacturing sector accounted for half of all Japanese enterprises and more than a third of Japanese business establishments in India.
“The total number of establishments has decreased while the number of companies has increased, as some companies have become non-Japanese due to office closures, corporate restructuring, change of ownership, etc.”, a statement from the Japanese Embassy said.