adb: ADB pledges $25 billion for India’s infra, social and green needs

The Asian Development Bank (ADB) Tuesday committed up to $25 billion for the next five years to fund India’s infrastructure creation under the PM Gati Shakti initiative as well as social development and climate action to help the country meet its priority development needs.

In his meeting with PM Narendra Modi, ADB president Masatsugu Asakawa conveyed ADB’s intention to provide $20-25 billion resources over five years to advance the country’s aspirations for fast, inclusive and green growth, ADB said in a statement.

“ADB will provide multifaceted support for India’s key priorities, including the important infrastructure push under the PM’s Gati Shakti (National Master Plan for multimodal connectivity) initiative, building future cities, mobilising domestic resources, and strengthening basic services in disadvantaged districts,” it said.

Under its green growth agenda, ADB will focus on supporting the decarbonisation of transport and the clean energy transition, including carbon market development and circular economy transition.

“Climate change adaptation actions are planned through projects on flood management, coastal protection, water use efficiency improvement and agriculture value chain development,” it said.

Recognising India’s effective combating of the Covid-19 pandemic and a quick post-pandemic recovery, president Asakawa said India remains the fastest growing major economy with expected 7% growth in fiscal year ending March 31, 2023.

In his meeting with FM Nirmala Sitharaman, Asakawa outlined ADB efforts to achieve annual regular lending of $4 billion from its sovereign operations in the next few years.

ADB started operations in India in 1986. As of December 31, 2022, ADB had committed $52.28 billion in sovereign lending in the country and $6.75 billion in non-sovereign lending and investment. ADB’s current India portfolio comprises 64 projects worth $16 billion across transport, urban, energy, human development, agriculture & natural resources and finance sectors. ADB is also in the process of finalising the new five-year country partnership strategy (CPS) for India for 2023-27 following a comprehensive stakeholder consultation process, it said.

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