ADB President announces $10 Bn plan for India’s Urban transformation

The Asian Development Bank (ADB) has announced a $10 billion commitment to boost urban growth in India. ADB President Masato Kanda announced this after meeting Prime Minister Narendra Modi in New Delhi on 31 May 2025. 

According to Masato Kanda, the ADB investment in the Indian urban infrastructure will help India achieve its target to become a Viksit Bharat by 2047. India will celebrate its 100th year of independence in 2047.

During his three-day visit to India, Masato Kanda met Finance Minister Nirmala Sitharaman and discussed the operationalisation of the Urban Challenge Fund for india.

He also met the Union Minister for Housing and Urban Affairs, Manohar Lal Khattar.

Proposed $10 billion ADB commitment to India 

The ADB has launched the Urban Challenge Fund for India to support and attract investment in India's urban infrastructure. 

• The $10 billion will be provided in the next five years through the Urban Challenge Fund.
• The capital will include loans to the government of India (sovereign loan), loans to the private sector, and third-party capital.
• The amount will be used to fund metro extensions in cities, new regional rapid transit system corridors in urban areas, and urban infrastructure and services.
• ADB will also provide $3 million in technical assistance to strengthen the capacity of states and urban local bodies and design viable urban projects.
• The Bank will invest in the National Industrial Training Institute Upgradation Program to strengthen skills development in India. 
• This program will help the manufacturing sector, increase private sector growth, and create quality jobs for urban youth.

India and the ADB 

ADB has launched the Country Partnership Strategy 2023-2027 for India.

ADB will provide more than $5 billion in loans annually for 2023-27.

Out of $5 billion,  $1 billion will be provided to the private sector..

ADB, which was established in 1966, provided a loan to India for the first time in 1986.

According to the ADB, as of April 2025, it had committed to providing India with $59.5 billion in sovereign lending and $9.1 billion in non-sovereign investments.

Headquarters of ADB: Mandaluyong City, Metro Manila, Philippines

Also Read: Nirmala Sitharaman attends the 58th ADB Board of Governors meeting