The Asian Development Bank (ADB) strengthened its partnership with India in 2025 by committing more than $5 billion in sovereign and private sector financing across sectors, including skills development, clean energy, transport, urban infrastructure, healthcare and sustainable tourism.

According to an official statement by ADB released on Monday, the total commitment included $4.238 billion in sovereign lending and $1.06 billion for private sector operations. The development bank said nearly one-third of the 16 newly committed sovereign projects were focused on human and social development, followed by renewable energy and urban development projects, particularly in lagging states and climate-focused sectors.

Mio Oka, ADB Country Director for India, said ADB remains committed to supporting India's development priorities as the partnership between India and ADB completes 40 years in 2026. "As we celebrate 40 years of our partnership with India in 2026, ADB remains committed to advancing the government's priority development agenda focusing on workforce skilling, clean energy deployment and urban transformation," Oka said.

She added that ADB will begin preparatory work in 2026 for its next country partnership strategy covering 2028-2032, with a focus on multisector and transformational projects supported by private sector collaboration and knowledge solutions. ADB stated that since beginning operations in India in 1986, it has committed more than $63 billion to public sector projects and over $10 billion to private sector operations.

Among the major commitments made during 2025, the ADB approved $846 million for the PM Skilling Scheme for ITI Upgradation (PM SETU) aimed at modernising Industrial Training Institutes and improving employability. The bank also committed $650 million for the PM Surya Ghar Muft Bijli Yojana to support rooftop solar expansion across the country.

In urban infrastructure, ADB committed $775 million for five projects across Assam, Kerala, Sikkim and West Bengal to improve urban services. Another $709 million was approved to expand the Delhi-Meerut Regional Rapid Transit System (RRTS) and metro projects in Chennai and Indore.

Additional investments included $460 million for rural power modernisation in Maharashtra and $398.8 million for healthcare and medical education projects in Assam. ADB also committed more than $200 million for ecotourism projects in Meghalaya and Uttarakhand, $110 million to strengthen Gujarat's skills ecosystem and $85 million to upgrade industrial infrastructure in Tripura.

Alongside sovereign lending, ADB continued expanding its private sector engagement in India. The bank committed $1.06 billion of its own financing for private sector operations and mobilised an additional $1.1 billion. According to the ADB, major focus areas for private sector support included financial institutions and sustainable infrastructure projects in energy, transport, water and urban development, as well as healthcare, education and agribusiness.

ADB also continued knowledge and policy support initiatives in India during 2025. The bank said its key knowledge work included support to the Ministry of Housing and Urban Affairs for developing three frameworks -- Creative Redevelopment of Cities, Cities as Growth Hubs, and Water Supply and Sanitation in Indian Cities.

These frameworks are expected to support the government's Urban Challenge Fund, aimed at raising commercial financing for urban transformation projects across Indian cities.

Published on May 11, 2026