ADB commits $2.6 billion to India for urban development and energy sector reforms in 2023

In 2023, the Asian Development Bank (ADB) announced a $2.6 billion sovereign loan to India, targeting projects aimed at urban development, improving industrial corridors, energy sector reforms, climate resilience, support for horticulture and improving connectivity. In addition, ADB provided $23.53 million in technical assistance and $4.1 million in grants. The bank also committed more than $1 billion to private sector projects during the year.

Mio Oka, ADB Country Director for India, highlighted the bank’s support for India’s priority agenda focusing on structural transformation, job creation, reducing infrastructure gaps, promoting green growth and social and economic inclusion. ADB aims to maximize development impact by promoting gender empowerment, resource mobilization, regional integration, knowledge-based solutions and capacity development.

In 2023, ADB approved additional financing for India’s National Industrial Corridor Development Program to enhance manufacturing competitiveness, along with a loan for the development of the Visakhapatnam-Chennai Industrial Corridor. Two policy-based loans supported urban reforms and energy sector reforms to facilitate the adoption of renewable energy. ADB has also funded the development of urban services in Uttarakhand, Rajasthan and Tripura, improvement of road connectivity in Bihar and Madhya Pradesh, expansion of the Delhi-Meerut rapid transit rail corridor and development of horticulture in Himachal Pradesh.

ADB’s approach varies depending on a state’s level of development, prioritizing basic services and critical infrastructure in low-income states, focusing on transformation programs and policy advice in more developed states. The bank’s expertise support included technical and operational research, such as assisting the Ministry of Commerce and Industry in establishing a national logistics costing framework and helping Assam develop its urban sector.

Founded in 1966 and comprised of 68 members, ADB remains committed to supporting a prosperous, inclusive, resilient and sustainable Asia and the Pacific with ongoing efforts to eradicate extreme poverty.

Related