India and Japan have formalised Official Development Assistance (ODA) loan agreements worth JPY 275.858 billion, approximately ₹16,420 crore, covering projects in urban transport, health and agriculture sectors, the Ministry of Finance said in a statement on Friday, 27 March.
The Notes were exchanged on 24 March 2026 between the Department of Economic Affairs, Ministry of Finance, and the Ambassador of Japan to India.
Loan agreements were subsequently signed between the Government of India and the Japan International Cooperation Agency (JICA).
Out of the total ODA package, two urban transport projects account for a substantial share of funding.
The Bengaluru Metro Rail Project Phase 3 (I) has been allocated JPY 102.480 billion (about ₹6,100 crore).
The project involves expansion of the metro network to address increasing traffic demand in the Bengaluru Metropolitan Region.
The Mumbai Metro Line 11 Project (I) has been allocated JPY 92.400 billion (about ₹5,500 crore). The project involves expansion of the metro system to cater to growing transport demand in Mumbai.
Together, the two metro projects form a major component (about ₹11,600 crore) of the ODA funding aimed at strengthening mass rapid transit infrastructure in India’s urban centres.
The remaining funding includes JPY 62.294 billion (about ₹3,708 crore) for strengthening tertiary healthcare delivery, medical education and nursing systems in Maharashtra, and JPY 18.684 billion (about ₹1,112 crore) for promoting sustainable horticulture in Punjab.
India and Japan have maintained development cooperation since 1958, with economic cooperation forming a key pillar of the bilateral relationship.
