The Asian Development Bank (ADB) has committed $10 billion to support India’s urban development, including metro expansion, over the next five years. “Cities are engines of growth… ADB will mobilize capital, accelerate delivery, and scale solutions that keep India’s urban economy moving and people thriving on the road to Viksit Bharat by 2047,” Kanda stated, as quoted by PTI. The announcement came after ADB President Masato Kanda met with Prime Minister Narendra Modi on Saturday. The initiative will leverage a mix of sovereign loans, private sector financing, and third-party capital, with a key focus on the Urban Challenge Fund (UCF). Backed by ADB, the UCF aims to attract private investment into urban infrastructure. Foundational studies are underway in 100 cities, focusing on growth centres, redevelopment, and water and sanitation upgrades. ADB is also providing $3 million in technical assistance to support project development and strengthen the capacity of state and local urban bodies. Projections suggest that over 40 per cent of India’s population will reside in urban areas by 2030. ADB is currently engaged in 110 cities across 22 states, with 27 ongoing loans worth USD 5.15 billion targeting water supply, sanitation, housing, and waste management. In transport infrastructure, ADB has invested USD 4 billion in metro and regional rapid transit systems (RRTS) across eight cities- including Delhi-Meerut, Mumbai, Nagpur, Chennai, and Bengaluru—covering 300 kilometres. These projects aim to ease congestion, reduce pollution, and enhance mobility. ADB is also supporting skills development under the National Industrial Training Institute Upgradation Program, intended to boost manufacturing, foster private sector growth, and create jobs. During his visit, Kanda reviewed the Delhi-Meerut RRTS corridor and interacted with women trained through ADB-supported programmes. Under its 2023–2027 country partnership strategy for India, ADB plans to provide over $5 billion in annual assistance, including $1 billion for non-sovereign projects to encourage private investment. Since starting operations in India in 1986, ADB has committed $59.5 billion in sovereign lending and $9.1 billion in non-sovereign investments. As of April 2025, its active sovereign portfolio includes 81 loans totalling $16.5 billion. Founded in 1966, ADB comprises 69 members, 50 from the Asia-Pacific region, and serves as a leading multilateral institution promoting inclusive and sustainable development through financial support and strategic partnerships.
