ADB commits $4.26 billion in sovereign lending to India in 2025

The Asian Development Bank (ADB) has committed $4.26 billion in sovereign lending to India in 2025. Supporting various projects across skilling, clean energy, urban development, transport, healthcare, and tourism. The funding aligns closely with India’s priority development goals and long-term growth strategy.

Overview of ADB’s 2025 Lending

In 2025, ADB approved 16 new sovereign projects for India. These investments aim to strengthen human capital, accelerate renewable energy adoption, modernize cities, and improve essential services.

Sector-wise distribution of projects,

• Human & Social Development: Roundly 32%
• Energy (mainly renewables): Nearly 26%
• Urban Development: Over 18%

Major Projects Supported by ADB

ADB’s lending portfolio in 2025 includes several high-impact national and state-level initiatives,

PM-SETU Skilling Programme

• $846 million to modernize Industrial Training Institutes (ITIs) across states
• Focus on employability, workforce readiness, and skill development

PM Surya Ghar Muft Bijli Yojana

• $650 million to expand rooftop solar adoption
• Aims to promote clean energy and reduce household electricity costs

Urban Infrastructure Development

• $775 million for five projects in Assam, Kerala, Sikkim, and West Bengal
• Focus on water supply, sanitation, and urban service upgrades

Metro and Rapid Rail Expansion

• $729 million for Delhi to Meerut RRTS and metro projects in Chennai and Indore
• Improves mobility, reduces congestion, and supports urban growth

Support for Power, Healthcare, and Tourism

ADB’s 2025 lending also covers key social and regional development sectors,

• Maharashtra Rural Power Infrastructure: $460 million to modernise rural power networks and improve solar-powered irrigation
• Healthcare in Assam: $398.8 million to upgrade healthcare services and medical education
• Ecotourism Development: Over $200 million for projects in Meghalaya and Uttarakhand

Promotes sustainable tourism and local livelihoods

Background: ADB and India

• ADB has been a long-term development partner for India, supporting infrastructure, energy transition, urban reforms, and social sector projects.
• Founded in 1966, ADB is owned by 69 member countries, including 50 from Asia-Pacific, and focuses on inclusive, resilient, and sustainable growth.
• In recent years, ADB has increasingly aligned its funding with India’s priorities such as clean energy, urban transformation, and job creation.

Key Takeaways

• Total ADB Lending (2025): $4.26 billion
• Skilling Focus: $846 million for PM-SETU
• Clean Energy: $650 million for rooftop solar scheme
• Urban Projects: $775 million across four states
• Transport: $729 million for metro and rapid rail

Question

Q. Which sector received the largest share of ADB’s 2025 lending to India?

A. Energy
B. Urban Development
C. Human & Social Development
D. Tourism