India and ADB

ADB helps India sustain its economic growth momentum by financing robust, inclusive, and modern infrastructure; efficient logistics; well-managed urbanization; social investments; and green initiatives.

ADB's Work in India  Download Fact Sheet

India's economic resurgence gained solid ground in 2023 as domestic demand improved and global commodity prices stabilized. The growth momentum has been fueled by a surge in public infrastructure investment, recovery in manufacturing activity, and a robust services sector. India’s gross domestic product grew by 7.6% in fiscal year (FY) 2023 with projections to grow steadily at 7% in FY2024 and 7.2% in FY2025.

India is a founding member of the Asian Development Bank (ADB) and its fourth largest shareholder. Since initiating operations in 1986, ADB has been a steadfast partner in supporting India’s development goals. The bank’s country partnership strategy (CPS) for 2023–2027 aligns with the country’s national priorities, seeking to catalyze robust, climate-resilient, and inclusive private sector-led growth by accelerating structural transformation and job creation, promoting climate-resilient green growth, and deepening social and economic inclusiveness. Additionally, ADB operations promote gender empowerment, domestic resource mobilization, regional integration, knowledge solutions, and capacity development.

As of 31 December 2023, ADB has committed 623 public sector loans, grants, and technical assistance totaling $55.3 billion to India. ADB’s current sovereign portfolio in India includes 67 loans worth $14.15 billion.

Cumulative sovereign and nonsovereign loan and grant disbursements to India amount to $43.45 billion. These were financed by regular ordinary capital resources and other special funds.

In 2023, ADB committed $2.6 billion in sovereign funding for projects that aim to strengthen urban development; support industrial corridor development; promote power sector reforms; build India’s climate resilience; support horticulture; and enhance connectivity including to economic clusters, markets, and rural communities. ADB also extended $23.53 million (including cofinancing) in technical assistance and $4.1 million (including cofinancing) in grants under the sovereign portfolio.

The bank continued to support to the Government of India’s urban reforms agenda and promotion of cities as engines of economic growth with a $141 million loan for the Visakhapatnam-Chennai Industrial Corridor Development Program to support integrated industrial and urban planning and investment promotion. Additionally, two $250-million projects were committed to support India’s industrial corridor development to enhance manufacturing competitiveness, and to construct the 82 kilometer (km) Delhi-Meerut Regional Rapid Transit System.

ADB committed one $250 million policy based loan to promote power sector reforms and to facilitate the shift to renewable energy. Two $200-million loans to expand the transmission and distribution network and urban services in Uttarakhand were also sequenced.

A $400 million policy-based loan was committed that will support investment planning and reform actions at the state and urban local body levels. In continued support to expanding urban services in Rajasthan, ADB committed a $200 million loan that will benefit 1.2 million residents across at least 10 urban local bodies. A $100-million loan was extended to improve urban services and create tourism facilities in Tripura.

To better link remote rural areas to urban centers and markets, ADB committed a $295 million loan to help widen and upgrade around 265 km of state highways in the state of Bihar and a $175 million loan to support road subsector development with climate resilience and safety features in Madhya Pradesh. A $130 million loan was provided to boost horticulture development in Himachal Pradesh.

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 2023 amounted to $2.39 billion representing 20.24% of ADB’s total private sector portfolio.

Operational challenges. The diverse sizes, development needs and priorities, and fiscal conditions of India’s states pose significant operational challenges for ADB, which has to calibrate its programs to meet local needs and high client expectations. States’ demand and borrowing space are important considerations in pipeline building. Ensuring high readiness and quality at entry is critical for good implementation performance. As ADB pivots toward complex, multidisciplinary programs and increases private sector engagement, operational challenges are to be expected on account of weak institutional capacities and limited experience of executing agencies in implementing such new, complex, and innovative projects.

 

Knowledge Work

ADB’s knowledge framework, aligned with India’s development priorities, continues to support operationally relevant upstream studies supplemented with knowledge solutions and capacity building.

Building on its solid partnership with the Ministry of Commerce and Industry in developing the logistics sector, ADB supported the ministry in formulating the national logistics costs calculation framework guided by global best practices. The joint efforts produced a report on logistics costs in India, emphasizing the country’s need to lower freight costs by analyzing the efficiency of routes, traffic growth, and congestion. ADB’s technical assistance helped Assam state prepare a strategic framework for developing its urban sector through institutional, financial, and e-governance reforms.

Additionally, ADB published a report entitled Partnering for COVID-19 Response and Recovery: The Asian Development Bank’s Support to India detailing its holistic support to the Government of India during the pandemic and recovery phases.

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
$9.02 billion

*Paid-in capital subscription
$450.91 million

* United States dollar figures are valued at rate as of 31 December 2023.


ADB Governor: Nirmala Sitharaman
ADB Alternate Governor: Ajay Seth
ADB Director: Vikas Sheel (India)
ADB Alternate Director: Nim Dorji (Bhutan)
ADB Director's Advisor: V. Ponnuraj (India) and Smita Sarangi (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: $8.45 billion for 51 investment projects and $169.98 million for 142 technical assistance projects since 1987
  • Nonsovereign cofinancing: $4.46 billion for 53 investment projects since 1988

In 2023, India received a $2 million grant cofinancing from the Japan Fund for Prosperous and Resilient Asia and the Pacific for the Uttarakhand Climate Resilient Power System Development Project; a $2.12 million grant and $212 million in loan cofinancing from the Kreditanstalt für Wiederaufbau for the Power Sector Reform Program (Subprogram 1); $100 million in loan cofinancing from the Export-Import Bank of Korea for the Strengthening Multimodal and Integrated Logistics Ecosystem Program (Subprogram 1); and $438.75 million in loan cofinancing from the Asian Infrastructure Investment Bank for the Chennai Metro Rail Investment Project – Tranche 1.

 

Future Directions

ADB’s CPS for India, 2023–2027, supports government priorities by anchoring operational approaches to catalyze robust, climate-resilient, and inclusive growth. ADB will be engaging in upstream studies and sustained dialogues with key central line ministries to identify their development priorities and financing and knowledge needs. To accelerate structural transformation, ADB will support strategic and coordinated investments and strengthen the logistics–industry–urban–skilling nexus to help cities serve as engines of economic growth. A holistic engagement framework will be operationalized to enable the central and state governments to prioritize and implement climate actions.

ADB will also strengthen its human development, agriculture, and rural development portfolios. At the state level, ADB will pursue a differentiated approach to prioritize projects on basic services, critical infrastructure and services, institutional strengthening, and private sector development through the sovereign operations in low-income states. Support for more developed states will focus on transformational programs with policy and knowledge advice, combined with nonsovereign operations.

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: 26 April 2024

Contacts

India Resident Mission
4, San Martin Marg, Chanakyapuri
P.O. Box 5331, Chanakyapuri HPO
New Delhi 110021, India
Tel: +91 11 66145 200/30922 200

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

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