ADB Unveils $10 Billion Strategy to Accelerate India’s Urban Transformation

The Asian Development Bank (ADB) has pledged up to USD 10 billion to support India’s urban development over the next five years, with a strong focus on metro expansion, transit-oriented development, and infrastructure upgrades across key cities. The initiative combines sovereign lending, private sector financing, and third-party capital to drive inclusive and sustainable urban growth on the path to Viksit Bharat 2047.

At the heart of the plan is the Urban Challenge Fund (UCF), India’s flagship initiative aimed at mobilizing private investment in urban infrastructure. ADB is supporting this effort through policy support, capital infusion, and foundational analytical work across 100 cities, including studies on growth hubs, creative city redevelopment, and improvements in water and sanitation systems.

To further strengthen project delivery and implementation, ADB is also committing USD 3 million in technical assistance. This support is intended to help states and urban local bodies design bankable projects and enhance institutional capacity.

India’s urban population is expected to exceed 40% of the total population by 2030, underscoring the urgency of robust infrastructure and services.

Currently, ADB is working with over 110 cities in 22 states, with an active urban portfolio of 27 loans worth USD 5.15 billion focused on water supply, sanitation, housing, and waste management.

In the area of urban transport, ADB has invested USD 4 billion over the past decade in metro and Regional Rapid Transit System (RRTS) projects across eight cities, including Delhi-Meerut, Mumbai, Chennai, Nagpur, and Bengaluru, covering more than 300 kilometers. These investments aim to alleviate congestion, reduce emissions, and improve mobility for all, including vulnerable populations and persons with disabilities.

In addition to sovereign lending, ADB’s Country Partnership Strategy for India (2023–2027) envisions annual financing of over $5 billion, including approximately $1 billion in non-sovereign operations. This blended model is designed to unlock greater private sector participation while ensuring long-term financial sustainability of urban infrastructure projects.

Moreover, ADB’s urban strategy emphasizes sustainable, integrated growth by advancing transit-oriented development (TOD) in cities like Nagpur and Indore, linking metro hubs with mixed-use zones. This is complemented by new RRTS corridors, urban infrastructure upgrades, and redevelopment efforts, backed by technical assistance for effective project planning and implementation.

In essence, ADB’s $10 billion commitment marks a significant step forward in accelerating India’s urban transformation. By combining substantial financial support with private sector engagement and strategic technical assistance, the initiative aims to build sustainable, inclusive, and resilient urban environments, equipping India to meet the rising demands of a rapidly urbanizing population.