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The Asian Development Bank (ADB) and Standard Chartered Bank have signed agreements to strengthen supply chain finance in India through risk-sharing arrangements covering both US dollar and Indian rupee transactions.
According to ADB, the agreements include a risk participation arrangement through Gujarat International Finance Tec-City (GIFT City) for US dollar-denominated transactions and a Partial Guarantee Facility Agreement for onshore Indian rupee transactions. The partnership aims to improve access to trade and supply chain finance for businesses operating in India and support the flow of domestic and cross-border trade. The agreements were signed in Mumbai by ADB Vice-President Bhargav Dasgupta and Standard Chartered Bank India and South Asia Chief Executive Officer P.D. Singh. According to ADB, access to trade and supply chain finance continues to be a key challenge for many businesses seeking to manage working capital, strengthen supply chains and participate in regional and global trade. The partnership seeks to address financing gaps by extending ADB's risk-sharing capacity across both offshore and onshore segments of the Indian market. A key feature of the collaboration is its focus on distributor financing, an area identified as an emerging and underserved segment of supply chain finance. The initiative is expected to support downstream businesses, many of which are small and medium-sized enterprises (SMEs), by improving access to working capital. "These agreements reflect ADB's continued commitment to strengthening trade and supply chain finance in India and across the region," said Mio Oka, Country Director, India Resident Mission, ADB. "Working with Standard Chartered Bank, we are helping expand financing capacity, improve risk-sharing mechanisms, and support businesses participating in regional and global trade," Oka added. ADB said the partnership aligns with its objective of promoting inclusive economic growth and financial deepening by facilitating new financing opportunities in segments that have traditionally faced barriers to credit. Commenting on the agreement, P.D. Singh said, "The partnership is a pivotal shift toward more sophisticated, inclusive supply chain financing models in India." He added that the combination of the Partial Guarantee Facility Agreement for onshore rupee transactions and the Risk Participation Agreement through the bank's GIFT City branch brings together Standard Chartered's market expertise and ADB's guarantee structures. "This partnership underscores our commitment to delivering structured, high-impact financing frameworks that will deepen the SME business ecosystems and support India's broader economic momentum," Singh said. ADB noted that Standard Chartered was the first foreign bank to commence banking operations in GIFT City in 2020 and has since financed more than USD 23 billion in trade and capital flows. (ANI)
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