The US International DFC (Development Finance Corporation) has announced a $70 million investment in India’s private sector, focusing on boosting health systems, affordable housing, and supporting small businesses. This investment aligns with the shared goals of the US and India to promote sustainable development and address critical regional challenges.
Investment in Health Systems
A significant portion of the funding will go towards strengthening India’s health infrastructure, particularly in the production of vaccines. As part of this effort, DFC Deputy CEO Nisha Biswal signed a $20 million loan agreement with Panacea Biotec Limited, a key pharmaceutical and vaccine manufacturer.
DFC invests in India
This loan will support Panacea in expanding its production of the hexavalent vaccine, which protects children from diphtheria, tetanus, polio, pertussis, hepatitis B, and Haemophilus influenza type B. The expansion is expected to enable Panacea to produce 70 million doses annually, meeting global vaccine demands more effectively.
“Our partnership with India is both local and global,” said Nisha Biswal during her visit to India. “We are working together to deliver developmental impact for communities across the country and tackling some of the world’s most urgent challenges.”
Affordable Housing Initiatives
Beyond the health sector, DFC is also contributing to the affordable housing sector in India. A $50 million loan has been provided to Vastu Housing Finance Corporation Limited, focusing on offering affordable home loans to lower- and middle-income families. This project is expected to benefit over 2,200 Indian families, with over 95% of the loans targeted at women borrowers.
Additionally, Vastu plans to offer 1,000 loans to small businesses, with a focus on those owned or led by women, furthering the goal of economic empowerment and inclusivity in India’s financial landscape.
Role in India and Indo-Pacific
India has become a critical market for DFC, representing the organization’s largest investment destination. As of fiscal year 2023, DFC has invested approximately $3.8 billion in India, with $820 million dedicated to new projects in the last year alone.
Moreover, DFC’s total investments in the Indo-Pacific region have surpassed $9.5 billion, underscoring the growing importance of this area. In the last quarter, DFC approved 42 new projects globally, amounting to $5.1 billion, with $230 million allocated to projects in Asia.
