India’s urban, infra, green priorities top $2.6 bn ADB lending in 2023

The Asian Development Bank (ADB) has commit ted USD 2.6 billion in sovereign lending to India in 2023 for projects that aim to strengthen urban development, support industrial corridor development, pro mote power sector reforms, build India’s climate resilience, support horticulture, and enhance connectivity, the lender said on Wednesday. The ADB also extended USD 23.53 million in technical assistance and USD 4.1 million in grants under the sovereign portfolio. In addition, ADB committed over USD 1 billion for private sector projects during the year. The ADB portfolio in 2023 supported the Government’s priority agenda and this will continue to focus on projects and programs that accelerate India’s structural transformation, create jobs, address infra structure gaps, promote green growth, and foster social and economic inclusiveness while deploying smart technologies and innovations. “To maximize the development impact of our operations ADB will promote gender empowerment, domestic resource mobilization, regional integration, knowledge solutions, and capacity development,” says ADB Country Director for India Mio Oka. In 2023, ADB approved additional funding to support India’s national industrial corridor development programme 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 re forms 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 Delhi–Meerut rapid rail transit corridor and boosting horticulture development in Himachal Pradesh. To guide policy making 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. The ADB notes that India’s economic resurgence gained solid ground in 2023 as domestic demand improved and global commodity prices stabilized. The growth momentum has been fuelled by a surge in public infrastructure investment, recovery in manufacturing activity, and a robust services sector. India’s gross domestic product grew by 7.6 per cent in fiscal year (FY) 2023 with projections to grow steadily at 7 per cent in FY2024 and 7.2 per cent in FY2025. As of 31 December 2023, ADB has committed 623 public sector loans, grants, and technical assistance totalling USD 55.3 billion to India and its current sovereign portfolio in India includes 67 loans worth USD 14.15 billion. Cumulative sovereign and on sovereign loan and grant disbursements to India amount to USS 43.45 billion.