India’s Act East policy seems to be bearing fruit as Japan recently committed loans worth around $2 billion (Rs 14,251 crores) for five infrastructure development projects in India.
The loans will be granted under the Official Development Assistance (ODA) model across various projects.
ODA is broadly divided into bilateral aid – in which assistance is given directly to developing countries – and multilateral aid, which is provided through international organisations.
“In the last few years, the economic cooperation between India and Japan has strengthened and grown into strategic partnership. With general political consensus and popular support for the greater cooperation between Indian and Japan, the partnership is poised for a great future,” India’s finance ministry said in a statement.