India becomes largest recipient of Japanese development loans

A total of €185.575mn (US$1.912mn) worth of overseas development assistance (ODA) loans have been signed between the Japan Bank of International Cooperation and the government of India. It is the second half of a Japanese ODA loan package to India arranged last year, with total overall Japanese ODA loans to India in 2007 amounting to €225,130mn (US$2.320mn).

This figure marks a 20% increase to the ODA packages signed in 2006, and India has now become the country receiving the largest volume of Japanese ODA loans for five consecutive years.

According to JBIC's annual survey report on Overseas Business Operations by Japanese manufacturing companies India has for the first time exceeded China as the most promising destination for sales and investment in the coming 10 years. However despite this progress, around one-third of India's total population is still living on less than a dollar a day.