ADB Commits $4.2 bn in Sovereign Lending to India

In 2025, the Asian Development Bank (ADB) committed USD 4.258 billion in sovereign lending to India, supporting a diversified portfolio of development interventions spanning workforce skilling, renewable energy deployment, urban infrastructure modernisation, mass transit expansion, healthcare reform, and sustainable tourism. The scale and sectoral spread of this financing underscore ADB’s continuing role as a key development partner in advancing India’s medium to long-term policy priorities.

Of the 16 newly committed projects, nearly 32 percent are directed towards the human and social development sector, reflecting a strategic focus on employability, skills enhancement, and labour-market readiness. The energy sector accounts for 26 percent of the portfolio, driven primarily by renewable energy initiatives, while over 18 percent of the lending is allocated to urban development, reinforcing the centrality of cities as engines of economic growth.

A flagship intervention within the 2025 programme is the USD 846 million financing for PM-SETU, India’s national skilling initiative. This funding is intended to modernise hundreds of Industrial Training Institutes across states, aligning technical education infrastructure with evolving industry requirements and strengthening the employability of the workforce. In the clean energy domain, ADB has committed USD 650 million to support the PM Surya Ghar Muft Bijli Yojana, a nationwide rooftop solar programme aimed at accelerating decentralised renewable energy adoption and reducing household energy costs.

Urban infrastructure and mobility form another significant pillar of ADB’s engagement. The Bank committed USD 775 million for five urban development projects across Assam, Kerala, Sikkim, and West Bengal, focused on improving water supply, sanitation, and related municipal services. In addition, USD 729 million has been approved to expand regional rapid rail connectivity in the Delhi–Meerut corridor and to extend metro networks in Chennai and Indore, with the objective of easing congestion, enhancing urban mobility, and supporting sustainable urbanisation.

ADB’s 2025 lending programme also addresses sector-specific development gaps. This includes a USD 460 million loan to Maharashtra to modernise rural power infrastructure and promote solar-powered irrigation, and a USD 398.8 million loan to Assam to strengthen healthcare delivery and medical education systems. Further, over USD 200 million has been committed to Meghalaya and Uttarakhand for ecotourism development, alongside targeted funding for skill ecosystem strengthening in Gujarat and industrial infrastructure upgrades in Tripura.

Beyond financial assistance, ADB has continued to provide policy and knowledge support to support institutional and regulatory reform. In 2025, this included collaboration with the Ministry of Housing and Urban Affairs to develop three strategic knowledge frameworks, Creative Redevelopment of Cities, Cities as Growth Hubs, and Water Supply and Sanitation in Indian Cities. These frameworks form the analytical foundation of the Government’s Urban Challenge Fund, which seeks to crowd in commercial finance for transformative urban projects.