India and ADB

ADB supports India’s priorities for robust, climate resilient, and inclusive growth, aligned with ADB’s Strategy 2030 and the country partnership strategy, 2023–2027.

ADB's Work in India Download Fact Sheet

The Asian Development Bank (ADB) supports India’s fast recovery from the coronavirus disease (COVID-19) pandemic, and efforts to ensure inclusive and sustainable growth, as the country adapts to post-pandemic conditions. Despite global headwinds, preliminary estimates reveal economic growth of 6.8% for fiscal year 2022 (which ended on 31 March 2023), bolstered by strong private consumption. Fiscal year 2023’s growth is forecast at 6.4%, buoyed by structural reforms, increased public investment, and sustained private consumption.

India is a founding member of ADB and the bank’s fourth largest shareholder. Since commencing operations in 1986, ADB has aligned its operations in the country to the government’s developing priorities. This approach will be pursued through the forthcoming country partnership strategy, 2023–2027. ADB remains committed to reinvigorating India’s economy to generate more formal jobs, help address climate challenges, and assist lower-income states. ADB operations also promote private sector development, gender empowerment, regional integration, knowledge solutions, and capacity development.

To date, ADB has committed 605 public sector loans, grants, and technical assistance totaling $52.6 billion to India. Cumulative loan and grant disbursements to India amount to $40.71 billion. These were financed by regular ordinary capital resources, and other special funds. ADB’s sovereign portfolio comprises 66 loans totaling $15.4 billion.

In 2022, ADB committed over $1.8 billion in sovereign loans to India. ADB extended $15.64 million in technical assistance and $16.41 million in grants under the sovereign portfolio. The bank continued to support India’s metro network expansion through a $350-million loan to improve connectivity in the city of Chennai while enabling transit-oriented development and first- and last-mile connectivity. ADB committed a $350-million loan to help develop Maharashtra’s road network in 10 lagging districts, improve rural communities’ access to health and social services, and reduce transportation costs for small businesses. Other projects included a $300-million loan for upgrading state highways and major district roads in Assam and a $110-million loan to upgrade state highways in Rajasthan.

To support government reforms in India’s logistics sector, ADB approved a $250-million loan to develop an institutional and policy framework for incentivizing private sector participation in multimodal logistics projects. The bank also provided a $220-million loan to Tripura to improve energy security and supply quality, and to build the sector’s resilience. ADB committed a $125-million loan to provide climate-resilient sewage collection, drainage systems, and water supply in Tamil Nadu. A $96-million loan will help provide safe, sustainable, and inclusive rural water supply and sanitation services in Himachal Pradesh.

ADB also committed funds to help plan and design projects for developing the infrastructure of industrial estates in Tripura, and for urban infrastructure development in Nagaland and Tripura’s capital, Agartala.

Photo: Asian Development Bank
ADB-funded Mumbai Metro Rail Systems project is helping improve urban mobility through efficient, safe and gender- and social-inclusive rail-based urban transit system in Mumbai city. Photo: Amit Verma/ADB

Nonsovereign operations. Total outstanding balances and undisbursed commitments of ADB’s nonsovereign transactions in India as of 31 December 2022 was $2.84 billion representing 22.2% of ADB’s total private sector portfolio.

In 2022, ADB signed six nonsovereign transactions in India with a total commitment of $208.1 million along with three regional transactions, with India allocations, totaling $185 million. Further, ADB’s Microfinance Risk Participation and Guarantee Program supported new loans of $226 million. Some of the notable deals involve the electric mobility space, water sector, agribusiness sector, crop nutrition, and transport finance.

Operational challenges. ADB operations in India cover more than 20 states, requiring a differentiated approach across and within lower- and higher-income states. Support to lower-income states focuses on basic infrastructure and services to accelerate inclusive growth. Support to higher-income states includes transformative projects marked by replicable innovation and good practices. Because of the spatial peculiarities across regions, ADB programs need to be calibrated to location-specific needs. ADB has also been requested to support India’s medium- to long-term recovery by enhancing assistance to micro, small, and medium-sized enterprises, and to health, education, and social protection systems in the post-pandemic era. ADB support to boost government infrastructure financing through nonsovereign operations will depend on the volume and type of private sector investment opportunities available.

 

Knowledge Work

ADB pursues a strategic, consultative, and responsive knowledge framework aligned to India’s development priorities. The bank supports operationally relevant upstream studies, supplemented with knowledge solutions and capacity building. In 2022, ADB supported the development and launch of the National Logistics Policy to improve India’s logistics efficiency. A joint ADB-NITI Aayog study identified interventions to fulfill the potential of cities as engines of growth. Other studies include developing an economic corridor in the northeastern region and a multimodal logistics park in Sabroom in Tripura, among others. ADB also provided technical assistance to explore solutions supporting India’s climate action to decarbonize transport, including developing an ecosystem for electric vehicles and energy transition.

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
$8.94 billion

*Paid-in capital subscription
$447.27 million

* United States dollar figures are valued at rate as of 31 December 2022.


ADB Governor: Nirmala Sitharaman
ADB Alternate Governor: Ajay Seth
ADB Director: Sameer Kumar Khare (India)
ADB Alternate Director: Nim Dorji (Bhutan)
ADB Director's Advisor: H. Atheli (India)

 

Financing Partnerships

Financing partnerships enable ADB’s financing partner governments or their agencies, multilateral financing institutions, and private organizations to participate in financing ADB projects. The additional funds provided may be in the form of loans and grants, technical assistance, and nonsovereign cofinancing.

Cumulative cofinancing commitments in India:

  • Sovereign cofinancing: $7.7 billion for 48 investment projects and $163.78 million for 139 technical assistance projects since 1987
  • Nonsovereign cofinancing: $3.82 billion for 42 investment projects since 1988

In 2022, India received a total of $772.35 million loan cofinancing from the Asian Infrastructure Investment Bank, the New Development Bank, and private concessionaires for three projects; and a total of $8.88 million additional grant cofinancing from the Japan Fund for Prosperous and Resilient Asia and the Pacific and the Global Environment Facility for the Integrated Urban Flood Management for the Chennai-Kosasthalaiyar Basin Project.

 

Future Directions

ADB’s program for India from 2023 to 2025 supports the country’s priorities for robust, climate resilient, and inclusive growth, aligned with ADB’s Strategy 2030 and the forthcoming country partnership strategy, 2023–2027. To help achieve greater inclusiveness, ADB will support India in strengthening its health care and social protection systems, and assist small- and medium-sized enterprises to bounce back from the pandemic. ADB will increase investments in education, finance, and public sector management. Support will be provided to help India meet its ambitious climate-action commitments. ADB will strategically engage with higher- and lower-income states through a differentiated approach. Other areas of support will include promoting gender equity, strengthening governance and institutions, increasing digitalization, and promoting regional cooperation and integration. Innovative upstream strategic studies and financing approaches will be pursued to boost private sector investment.

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.

Last updated: 2 May 2023

Contacts

India Resident Mission
Asian Development Bank
4, San Martin Marg, Chanakyapuri
P.O. Box 5331, Chanakyapuri HPO
New Delhi 110021, India
Tel: +91 11 2410 7200
Fax: +91 11 2687 0955/2419 4273

Ministry of Finance
Government of India
New Delhi, India
Tel: +91 11 2309 2810/2510
Fax: +91 11 2309 2829

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