ADB Approves $109.97 Million Loan to Transform Skills Development in Gujarat

In a major push toward strengthening India’s workforce capacity, the Asian Development Bank (ADB) has approved a $109.97 million results-based loan to support Gujarat’s efforts in advanced technical and vocational education and training (TVET). This initiative, executed through the Gujarat Skills Development Program, aims to create a globally competitive, inclusive, and technologically equipped workforce that meets the demands of fast-evolving industries such as automotive, logistics, IT, healthcare, and renewable energy.

Why in News?

On 13 June 2025, ADB formally approved a $109.97 million loan for Gujarat. The loan supports the state’s Labor, Skill Development and Employment Department in partnership with Kaushalya: The Skill University (KSU). The move is part of a larger plan to future-proof India’s industrial workforce and promote inclusive growth aligned with NEP 2020 and the Gujarat Skills Development Plan (2025–2030).

Objectives and Scope

• Equip youth with industry-aligned advanced skills for high-growth sectors.
• Enhance governance and institutional capacity of the TVET system.
• Establish a scalable and replicable skilling model across Indian states.

Key Interventions Under the Program

• Upgrade 11 mega Industrial Training Institutes (ITIs).
• Establish Centers of Excellence for advanced skilling.
• Implement a hub-and-spoke model anchored by KSU, linking private training partners.
• Design industry-integrated courses in collaboration with leading sectors.

High-Priority Sectors Covered

• Logistics
• Automotive
• Advanced Manufacturing
• Information Technology
• Healthcare
• Renewable Energy
• Agri-tech

Inclusion & Gender Empowerment

• Increase female enrollment in engineering and tech disciplines.
• Train 175,000 individuals from disadvantaged backgrounds.
• At least 60,000 students to graduate with advanced technical skills by 2030.

Results-Based Lending (RBL) Modality

Funds linked to measurable outcomes, such as,

• Enhanced employability of students.
• Stronger governance at KSU.
• Partnerships with global certifying bodies.
• Upgraded faculty quality and training content.

Sustainability and Climate Resilience

• Integration of climate-resilient and green building features.
• Supports Gujarat’s broader goals of environment-friendly infrastructure and inclusive growth.

About ADB

• Founded: 1966
• Ownership: 69 member countries (50 from Asia-Pacific)
• Mission: Sustainable, inclusive, resilient growth across Asia and the Pacific
• Tools: Strategic financing, partnerships, and innovation-driven development