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Annual Report 2003 : Moving the Poverty Reduction Agenda Forward: Priorities and Outcomes : South Asia

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India

Strategy and Policy Dialogue.
India significantly reduced income poverty and is also likely to achieve its target for primary school enrollment. Access to drinking water was improved in both rural and urban areas; however, the maternal mortality rate remained stagnant, gender parity in secondary education was still well below target, and under-five and infant mortality rates continued to be high.

ADB operations in India were aimed at poverty reduction. Projects focused on reforms, public resource management, better governance, building rural and urban infrastructure, and improving the environment. Public resource management programs were combined with capacity-building components to improve the delivery of pro-poor services at the state and local levels. Assistance was also extended to some poorer states to help contain growing interregional disparities, especially in the remote northeastern areas.

In fiscal consolidation, ADB moved beyond state operations to support improved tax administration at the central level. In infrastructure, the focus was on removing bottlenecks and on promoting private investment in public infrastructure such as road systems, inland water transport, railways, gas-based energy, and power. Physical investments were combined with policy reforms and capacity building which are just as important for delivery of services. In the power sector, ADB aimed to assist the Government’s reform program especially in focal states. Energy projects concentrated on environmentally friendly sources of power such as renewable energy and hydropower and promoted the use of cleaner fuels to protect urban environments.

An important facet of ADB’s assistance for 2003 was entry into the agriculture sector. Expansion of operations in agriculture and rural development helped mainstream poverty reduction. ADB moved toward new approaches to integrated urban development that combine reform and capacity building with investment in urban infrastructure. Governance was the most important strategic priority and leveraging instrument, cutting across all sectors for enhancing the impact of ADB assistance.

Loans and Technical Assistance.
Nine loans totaling $1.5 billion were approved. They were for development of rural roads, state roads, and national highways; urban water supply and environment improvement; and power development. Twenty-two technical assistance projects totaling $14.7 million were also approved.

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