The Asian Development Bank (ADB) has announced its partnership with India, aiming to support the country’s initiatives and programs in the field of urban development. As part of its new country partnership strategy for India, the bank will contribute to India’s flagship projects, including industrial corridors, multimodal logistics systems, urban infrastructure, skill development ecosystem, and small businesses.
In a statement, the multilateral institution expressed its commitment to accelerating structural transformation and job creation, promoting climate-resilient growth, and fostering social and economic inclusiveness during the period of 2023-2027. ADB, headquartered in Manila, aims to strengthen its ties with India and assist in achieving inclusive and climate-resistant growth over the next five years through its new strategy.
By focusing on these initiatives, urban areas in India will be able to unlock their potential as engines of growth, enhancing industrial competitiveness and generating more employment opportunities in formal manufacturing and service sectors. ADB’s Country Director for India, Takeo Konishi, emphasized that the new strategy was developed in consultation with government counterparts, the private sector, and other stakeholders within the country, with the goal of helping India achieve higher economic growth.
ADB’s new strategy for India will also prioritize supporting the country’s climate agenda. This will involve providing support for energy transition, decarbonization of the transport sector, climate adaptation measures, and effective disaster risk management. Furthermore, the bank will enhance its assistance for improved education, healthcare, and social protection in India. The focus will be on improving urban livability, rural development, gender empowerment, and environmental sustainability, according to Konishi.
ADB acknowledged India’s swift recovery from the impacts of the Covid-19 pandemic, positioning it as one of the fastest-growing major global economies. The bank projects a notable economic growth rate of 6.4 percent for India in the fiscal year 2024. Recent developments indicate that India’s GDP grew by 7.2 percent during the fiscal year 2022-2023, surpassing the estimate of 7 percent projected by the Reserve Bank of India (RBI).
Addressing critical challenges such as infrastructure, human development, income disparities, regional gaps, and vulnerability to climate change and natural hazards is crucial for India’s accelerated and sustained inclusive growth, as emphasized by ADB. India has been a key partner for ADB, with the bank having already committed $52.6 billion in public sector loans, grants, and technical assistance, along with $8 billion in private sector investments as of December 2022.