ADB Commits $2.6 Billion to India in 2023 for Development Projects
In 2023, the Asian Development Bank ( ADB ) committed $2.6 billion in sovereign lending to India. This funding aims to strengthen urban development, support industrial corridor projects, promote power sector reforms, build climate resilience, and enhance connectivity.
Financial Support Breakdown
ADB extended $23.53 million in technical assistance and $4.1 million in grants under the sovereign portfolio. Additionally, ADB committed over $1 billion for private sector projects, underscoring its comprehensive support for India’s development agenda.
ADB’s Mission and History
ADB’s mission is to foster a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, with a sustained focus on eradicating extreme poverty. Established in 1966 with 31 members, ADB has grown to include 68 members. It provides loans, technical assistance, grants, and equity investments to promote social and economic development.
ADB’s Operational Strategy
ADB maximizes the development impact of its assistance by facilitating policy dialogues, providing advisory services, and mobilizing financial resources. It pursues a differentiated approach tailored to states at various development stages, prioritizing projects on basic services, infrastructure, institutional strength, and private sector development.
Historical Context and Founding Vision
ADB was conceived in the early 1960s to foster economic growth and cooperation in Asia. The institution was established following a resolution at the 1963 Ministerial Conference on Asian Economic Cooperation. Manila, Philippines, was chosen as its headquarters, and ADB began operations on December 19, 1966.
India’s Partnership with ADB
India, a founding member and the fourth-largest shareholder, has had a robust partnership with ADB since 1966. As of December 31, 2023, ADB has committed 623 public sector loans, grants, and technical assistance totaling $55.3 billion to India. The current sovereign portfolio includes 67 loans worth $14.15 billion.
Focus Areas and Recent Developments
ADB’s recent commitments include supporting India’s national industrial corridor development program and a loan for the Visakhapatnam-Chennai Industrial Corridor. Additionally, ADB provided funding for urban services in Uttarakhand, Rajasthan, and Tripura, road connectivity improvements in Bihar and Madhya Pradesh, expansion of the Delhi-Meerut rapid rail transit corridor, and horticulture development in Himachal Pradesh.
Way Forward
ADB’s significant financial commitment to India underscores its ongoing support for the country’s structural transformation, job creation, infrastructure development, green growth, and social and economic inclusiveness. Through strategic investments and collaborations, ADB continues to play a crucial role in advancing India’s development goals.
