ADB commits $10 billion for India’s urban growth

New Delhi

The Asian Development Bank (ADB) has pledged up to $10 billion over five years to support India’s urban transformation. The commitment includes metro expansions and key infrastructure developments aimed at improving urban life and attracting private investment. ADB President Masato Kanda made the announcement after meeting Prime Minister Narendra Modi.

The investment plan involves sovereign loans, private sector financing, and third-party capital. A central part of the initiative is India’s Urban Challenge Fund (UCF), which ADB will support to boost private investment in 100 cities. This fund will back projects in creative redevelopment, water, and sanitation upgrades.

ADB has also committed $3 million in technical assistance to help design viable projects and build capacity among local authorities. India’s cities are expected to host over 40% of the population by 2030, highlighting the urgency of infrastructure improvements.

ADB’s current urban portfolio in India includes 27 active loans worth $5.15 billion, with previous investments in water supply, waste management, and housing across 110 cities. It has already invested $4 billion in metro and regional rail projects, covering 300 km in eight major cities, helping ease traffic and reduce emissions.

The bank will also support skill development through the National Industrial Training Institute Upgradation Program, aiming to boost manufacturing jobs for youth. Under its 2023–2027 partnership strategy, ADB plans to provide $5 billion in annual financing, including $1 billion in private investment initiatives.

Since starting operations in India in 1986, ADB has committed $59.5 billion in sovereign lending and $9.1 billion in non-sovereign funding. It remains a key partner in India’s effort to achieve sustainable and inclusive urban development by 2047.