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India and ADB

ADB is supporting the Government of India’s pre-emptive and proactive measures to fight the COVID-19 pandemic and mitigate its adverse impacts while fostering the country’s recovery process.

ADB's Work in India

ADB Membership

Joined 1966

Shareholding and Voting Power

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

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

Overall capital subscription:
$9.68 billion

Paid-in capital subscription:
$484.05 million

India was a founding member of the Asian Development Bank (ADB) in 1966. Today, the country is ADB’s fourth-largest shareholder and its top borrower since 2010.

Over the past 2 decades, India has witnessed sound economic growth to emerge as one of the world’s fastest-growing economies. Poverty has been more than halved since 2004, but the spread of the coronavirus disease (COVID-19) in 2020 hampered the country’s economic growth trajectory and caused severe health, social, and economic impacts.

ADB is pursuing to develop multimodal urban transport systems

Since commencing country operations in 1986, ADB has responded to India’s evolving development priorities to support the country’s inclusive economic transformation. ADB is working to build India’s industrial competitiveness, create much-needed jobs, enable the growth of low-income states, and address environmental and climate challenges. These objectives are complemented by promoting private sector development, gender empowerment, regional integration, and knowledge services and capacity development.

Since 1986, ADB has committed 252 sovereign loans totaling $45.85 billion for India.

Cumulative loan and grant disbursements to India amount to $34.96 billion. These were financed by regular ordinary capital resources, and other special funds.


ADB-Supported Projects and Programs

ADB’s current sovereign portfolio in India includes 79 projects worth $14.4 billion.

In 2020, ADB provided swift support to the government’s COVID-19 response programs. The bank fast-tracked a $1.5 billion loan to meet immediate priorities to upgrade hospital facilities and increase test-track-treatment capacity, and to support social protection measures for immediate relief to the poor, women, and other vulnerable groups. To alleviate the pandemic’s effects, ADB is expanding assistance to protect small businesses, strengthen primary health care in urban areas, and underpin education, social protection, and infrastructure development.

Across 2020, ADB continued its regular assistance to energy, transport, urban development, and public sector management in India—committing a record $3.92 billion in sovereign loans for 13 projects.

ADB committed five energy loans. The Bengaluru Smart Energy Efficient Power Distribution Project supports modernizing power distribution in the state of Karnataka. ADB’s blend financing, constituting $100 million sovereign and $90 million nonsovereign loan, will help the local power entity move toward market-based borrowing. Meanwhile, three projects aim to improve the quality and reliability of electricity supply in Maharashtra ($346 million), Uttar Pradesh ($300 million), and Meghalaya ($132.8 million). ADB committed another $231 million to build a 120-megawatt hydroelectric power plant in Assam.

To enhance urban mobility, ADB committed $500 million to build a modern, high-speed 82-kilometer Delhi-Meerut Regional Rapid Transit System corridor. This will help develop economic centers around the corridor and ease traffic congestion in the capital, New Delhi. The bank also committed $177 million to upgrade 450 kilometers of state highways and major district roads in Maharashtra.

ADB continued to support sustainable urban development in secondary and smaller towns of the states of Rajasthan and Madhya Pradesh, with commitment of $300 million and $270 million, respectively.

Through its project readiness financing modality, ADB committed funds to provide capacity development support for planning and designing urban and tourism infrastructure development projects in Tripura ($4.21 million) and for horticulture expansion in Himachal Pradesh ($10 million).

Coastal protection leads to environmental sustainability, safety, and income generating opportunities for communities in Ullal.

ADB also provided key knowledge products in 2020 that covered studies on economic corridors; an industrial park rating system; micro, small, and medium-sized enterprises; multimodal logistics parks; and India’s participation in global value chains.

ADB’s capacity development resource center responded to the COVID-19 challenge by developing pandemic related e-learning modules for civil servants and frontline health care workers.

Nonsovereign Operations

As a catalyst for private investments, ADB provides financial assistance to nonsovereign projects and financial intermediaries. Total commitments in loans and equity investments from ADB’s own funds in 2020 amounted to $1.4 billion for 38 transactions in economic and social infrastructure, finance sector, and agribusiness. ADB also actively mobilizes cofinancing from commercial and concessional sources. In 2020, ADB mobilized $1.9 billion of long-term project cofinancing and $3.3 billion of cofinancing through its Trade and Supply Chain Finance Program and Microfinance Program. Total outstanding balances and commitments of nonsovereign transactions funded by ADB’s own resources stood at $14.3 billion as of 31 December 2020.

In 2020, commitments from ADB’s own funds amounted to $356.1 million for three COVID-19 support projects, a housing finance project, a food security project, a private equity fund, and two solar power projects in India. Total outstanding balances and commitments of ADB’s nonsovereign transactions in the country as of 31 December 2020 was $3.3 billion, representing 23% of ADB’s total nonsovereign portfolio.

Financing Partnerships

Financing partnerships enable ADB’s financing 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 and Supply Chain Finance Program and Microfinance Program.

ADB began cofinancing operations in India in 1987. Since then, sovereign cofinancing commitments for India have amounted to $5.49 billion for 41 investment projects and $143.01 million for 130 technical assistance projects. Nonsovereign cofinancing for India has amounted to $3.42 billion for 36 investment projects and $1.2 million for three technical assistance projects.

In 2020, India received a total of $1.25 billion loan cofinancing from the Asian Infrastructure Investment Bank and the New Development Bank for two investment projects; and a total of $7 million grant cofinancing from the Japan Fund for Poverty Reduction, for three investment projects.

A summary of cofinanced projects is available at India: Cofinancing.

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

Operational Challenges

ADB operations in India, covering more than 20 states, involve a diverse range of stakeholders with varied capacities and demand. Low-income states need to strengthen project implementation capacities and systems. More advanced states face challenges such as urbanization, industrialization, lack of well-paid jobs, and environmental degradation.

The COVID-19 pandemic presents multiple challenges to India in reviving its economy. These include strengthening the role of micro, small, and medium-sized enterprises in generating quality jobs; reprioritizing spending on health and education, bridging the digital divide, reforming the state-dominated finance sector, and incentivizing private sector participation in infrastructure financing.

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

Future Directions

The country operations business plan for 2021–2023 caters to the requirements of India’s more advanced states for transformative initiatives, while retaining focus on improving infrastructure, providing economic and social services, and underpinning capacity building in low-income states. The program also aims to rebalance support from “hard infrastructure” to education and health, finance, and public sector management. This shift aligns with India’s expansionary track toward human development and its response to the COVID-19 pandemic.

To support ADB’s strategy of deepening its engagement with low-income states, investment financing will continue to be complemented by project readiness financing, particularly in the capacity-constrained states of the northeastern region.

ADB intends to sustain its regular assistance program and deploy additional resources to support India’s many COVID-19-related challenges. The bank will 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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