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India and ADB

ADB's support to India aims to accelerate economic transformation by building industrial competitiveness, creating jobs, accelerating growth of low-income states, and addressing environmental and climate change challenges.

ADB's Work in India

ADB Membership

Joined 1966

Shareholding and Voting Power

Number of shares held:
672,030 (6.317% of total shares)

711,144 (5.347% of total membership, 8.211% of total regional membership)

Overall capital subscription:
$9.29 billion

Paid-in capital subscription:
$464.74 million

India’s rapid economic growth in recent decades has lifted the country to become the world’s third-largest economy (in purchasing power parity terms), while major economic reforms have helped dramatically reduce poverty since 2004.

India was a founding member of ADB in 1966 and is now the bank’s fourth-largest shareholder. ADB’s operations in India commenced in 1986, and the bank remains committed to helping the country achieve its aspiration of becoming a $5 trillion economy by 2025. India has been ADB’s top borrower since 2010.

ADB’s country partnership strategy, 2018–2022 for India aims to accelerate the country’s inclusive economic transformation. The strategy focuses on building industrial competitiveness to create more jobs, extending infrastructure and services to low-income states, and addressing environmental and climate change concerns. These objectives are pursued while promoting private sector development, gender empowerment and social inclusion, and regional integration through the South Asia Subregional Economic Cooperation (SASEC) and other forums.

ADB’s engagement with India goes beyond filling finance gaps. It strives to add value by combining project financing with knowledge services and capacity development.

Providing reliable electricity in Guwahati

Since 1986, ADB has committed 239 sovereign loans totaling $42.26 billion for India. Cumulative loan and grant disbursements to India amount to $31.79 billion. These were financed by regular ordinary capital resources and other special funds.

ADB-Supported Projects and Programs

ADB’s current portfolio in India includes 69 sovereign loans amounting to $13.4 billion.

In 2019, the bank committed a record $3.18 billion for 10 sovereign projects aimed to develop infrastructure and services in transport, energy, urban services, and agriculture and natural resources.

Improving connectivity and accessibility to services and markets at the state, district, and rural levels remains a key area of ADB’s support in India. The bank committed $490 million for a public–private partnership project to upgrade about 1,600 kilometers of state highways and major district roads in Madhya Pradesh, along with assistance for state highway improvements in Chhattisgarh ($350 million) and Rajasthan ($190 million). Another $200 million was committed to upgrade about 2,100 kilometers of rural roads to all-weather standards in Maharashtra.

To improve urban mobility and decongest crowded suburban rail systems in Mumbai, ADB committed $926 million to operationalize two new lines for the Mumbai Metro Rail System. ADB financing will help procure stateof-the art carriages incorporating safety features for the elderly, women, and people with disabilities.

ADB committed $206 million to develop water supply and sewerage infrastructure in five cities of Tamil Nadu.

The investment will benefit residents, workers, and industries in the state’s economic corridors. Another $26 million was committed to improve drainage infrastructure in Dibrugarh in the state of Assam.

ADB is pursuing to develop multimodal urban transport systems

ADB continued its support for India’s national goal to promote energy efficiency and its international commitment to reduce energy intensity. The bank committed a $250 million loan to Energy Efficiency Services Limited to expand investments in energy smart meters, distributed solar photovoltaic systems, and electric vehicles.

To help develop the Chennai–Kanyakumari Industrial Corridor in Tamil Nadu, which is part of the ADB-supported East Coast Economic Corridor (ECEC) that extends to Kolkata in West Bengal, ADB committed $451 million to extend power availability to emerging manufacturing centers in the industrial corridor.

In the agriculture and natural resources sector, ADB committed $91 million to strengthen the capacity of state and basin institutions for integrated water resources management in Karnataka.

Complementing its lending assistance with knowledge support, ADB undertook strategic studies to identify growth pathways, new investment opportunities, and policy advice in sectors covering key industrial nodes in the ECEC, North Eastern Region Economic Corridor, coastal shipping, and the education system.

Ilkal in the state of Karnataka works with the private sector to become first in India with 24/7 clean water

Nonsovereign Operations

As a catalyst for private investments, ADB provides financial assistance to nonsovereign projects and financial intermediaries. Total commitments from ADB’s own funds (in equity and direct loans) in 2019 amounted to $3.00 billion for 38 transactions in economic and social infrastructure, the finance sector, and agribusiness. During 2019 in India, ADB committed financing of $955.06 million for five loan transactions and $10 million for one equity transaction. ADB also actively mobilizes cofinancing from commercial and concessional sources. In 2019, ADB mobilized $3.28 billion of long-term cofinancing and $3.69 billion of cofinancing in trade finance, microfinance, and supply chain finance programs. Total outstanding balances and commitments of nonsovereign transactions funded by ADB’s own resources stood at $13.78 billion as of 31 December 2019.

Financing Partnerships

Financing partnerships enable ADB’s development partners, governments or their agencies, multilateral financing institutions, and commercial organizations to participate in financing ADB projects. The additional funds are provided in the form of loans and grants, technical assistance, and other nonsovereign cofinancing such as B loans, risk transfer arrangements, parallel loans and equity, guarantee cofinancing, and cofinancing for transactions under ADB’s Trade Finance Program and Supply Chain Finance Program.

ADB began cofinancing operations in India in 1987. Since then, sovereign cofinancing commitments for India have amounted to $4.09 billion for 36 investment projects and $136.12 million for 126 technical assistance projects. Nonsovereign cofinancing for India has amounted to $2.97 billion for 26 investment projects and $1 million for two technical assistance projects.

In 2019, India received a total of $529.94 million in loan cofinancing from KfW, the New Development Bank, and the Clean Technology Fund for three projects.

Projects Cofinanced, 1 January 2014–31 December 2018

Operational Challenges

ADB operations in India—spanning six sectors and covering more than 20 states—involve a diverse range of project partners with varied experience and capacities. ADB aims to establish stronger partnerships in low-income states, including those in the country’s northeast, to help strengthen project implementation capacities and systems. As part of those efforts, ADB introduced project readiness financing to assist states in preparing feasibility studies, detailed designs, advance procurement actions, safeguards due-diligence reports, legal services, and more robust cost estimates. As a result, India has strengthened its implementation performance.

In more advanced states, there is a growing need to address complex challenges such as urbanization, industrialization, lack of well-paid jobs, environmental degradation, and climate change impacts, while mobilizing private capital and municipal resources. ADB is pursuing development of integrated multimodal urban transport systems, promoting anchor investors in economic corridors, and revitalizing public–private partnerships. Through technical assistance, the bank continually supports integrated development planning and adoption of global best practices.

ADB has helped foster small- and medium-sized enterprises in India.

Future Directions

ADB’s country partnership strategy for India is closely aligned with the government’s development priorities and transformative programs. ADB will continue to focus on support for industrial corridor development; national road safety, micro, small, and medium-sized enterprises; the Jal Jeevan Mission; and logistics efficiency and urban transport, including metro rail and rapid rail transit systems. ADB will also expand its support to social sectors such as national education and health programs. Support to promote regional cooperation and integration will continue through SASEC. Using its One ADB approach, the bank will integrate its sovereign and nonsovereign operations to deliver better operational outcomes and client service.

In 2019, ADB achieved its target of $4 billion in annual sovereign and nonsovereign lending commitments to India. The bank intends to sustain this lending over the next few years, including annual investments of $1 billion each in economic corridors and low-income states. ADB will specifically seek to accelerate efforts for financial leveraging to attract private investments and promote local resource mobilization.

A school bus transports children from Muhali village to Seypor everyday

This article was originally published in the ADB and India: Fact Sheet. Updated yearly, this ADB Fact Sheet provides concise information on ADB's operations in the country and contact information.

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