Asian Development Bank pledges $10B investment for India's growth
What's the story
The Asian Development Bank (ADB) has announced a massive investment plan of up to $10 billion for the transformation of urban areas in India.
The plan, which will be implemented over the next five years, includes funding for metro extensions and other infrastructure projects.
ADB President Masatsugu Asakawa made the announcement after meeting Prime Minister Narendra Modi on Saturday.
Funding details
Investment strategy and urban challenge fund
The ADB's transformation plan will be funded through a combination of sovereign loans, private sector financing, and third-party capital.
The initiative is centered around India's Urban Challenge Fund (UCF), which the ADB is backing to draw private investment into urban infrastructure.
Analytical work on growth hubs, city redevelopment, and water and sanitation upgrades in 100 cities across India is being done as part of this effort.
Project support
Commitment to technical assistance and project development
The ADB has also pledged $3 million in technical assistance to help design bankable projects and strengthen the capacity of states and urban local bodies.
This is part of a larger strategy, as India's towns and cities are expected to host over 40% of the population by 2030.
The ADB has already partnered with over 110 cities across 22 states on various projects related to water supply, housing, sanitation, and solid-waste management.
Infrastructure investment
Investment in urban transport and skills development
Over the last decade, the ADB has invested $4 billion in metro projects and regional rapid transit systems (RRTS) covering 300km across eight cities.
These include Delhi-Meerut RRTS, Nagpur Metro, Mumbai Metro, Chennai Metro, and Bengaluru Metro.
The investments are aimed at reducing congestion and emissions while improving access for vulnerable populations such as people with disabilities.
Skill development
Commitment to skill development and job creation
The ADB also plans to invest in skill development through the National Industrial Training Institute Upgradation Program.
This initiative is aimed at boosting the manufacturing sector, catalyzing private sector growth, and creating quality jobs, especially for India's youth.
Under its country partnership strategy for India (2023-2027), the ADB is ready to provide over $5 billion in financing each year, including about $1 billion in non-sovereign operations to encourage additional private investment.