ADB Commits $2.6 Billion In Sovereign Lending to India

ADB Commits $2.6 Billion In Sovereign Lending to India

The Asian Development Bank (ADB) which supports projects in developing member countries committed $2.6 billion in sovereign lending to India in 2023 for projects related to urban development, supporting industrial corridor development, promoting power sector reforms, support horticulture, and enhance connectivity. ADB also extended $23.53 million in technical assistance and $4.1 million in grants under the sovereign portfolio. In addition, ADB committed over $1 billion for private sector projects during the year.

“ADB’s portfolio in 2023 supported the government’s priority agenda. We will continue to focus on projects and programs that accelerate India’s structural transformation, create jobs, address infrastructure gaps, promote green growth, and foster social and economic inclusiveness while deploying smart technologies and innovations,” said ADB Country Director for India Mio Oka. “To maximize the development impact of our operations ADB will promote gender empowerment, domestic resource mobilization, regional integration, knowledge solutions, and capacity development.”

In 2023, ADB approved additional funding to support India’s national industrial corridor development program to enhance its manufacturing competitiveness along with a loan for Visakhapatnam–Chennai Industrial Corridor Development. Two policy-based loans were committed to support the government’s urban reforms agenda at the state level and power sector reforms to facilitate the shift to renewable energy. In addition, ADB provided funding for expanding urban services in the states of Uttarakhand, Rajasthan, and Tripura; improving road connectivity in Bihar and Madhya Pradesh; expanding the Delhi–Meerut rapid rail transit corridor and boosting horticulture development in Himachal Pradesh.

Committed to pursuing a differentiated approach for states at different stages of development, ADB prioritizes projects on basic services, critical infrastructure and services, institutional strength, and private sector development through sovereign operations in low-income states. Support for more developed states focuses on transformational programs with policy and knowledge advice, combined with nonsovereign operations.

To guide policymaking and help identify transformative investments, ADB continues to provide knowledge support through technical and operational studies. Key knowledge work in 2023 included support to the Ministry of Commerce and Industry in formulating the national logistics costs calculation framework and assisting the Government of Assam to prepare a strategic framework for developing its urban sector. ADB also came out with a report on its holistic support to the Government of India during the COVID-19 pandemic and recovery phases.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.