The Asian Development Bank has announced an offering of around $300 million to India to promote growth of its micro, small and medium-sized businesses. Its Board sanctioned a loaning amount of $50 million and a partial credit guarantee of around $250 million for the project.

The micro, small and medium sized enterprises offer second-biggest employment segment in India after farming, offering livelihoods to an approximated 65 million people, majority of being women residing in slum areas and other deprived residential areas.

The loan would be given to SIDBI to support enterprises, which have become too large to tap traditional microfinancing but are still incapable to access conservative bank finances. The project is likely to benefit approximately 30,000 business groups and generate at least 7,500 new jobs. It would also help expand domestic capital markets by exposing India's banking institutions to worldwide markets.