ADB to pump in $10 bn to boost urban infrastructure in India

Asian Development Bank (ADB) on Sunday pledged $10 billion to support India's urban infrastructure as part of the goal to attaining developed nation status by 2047. The commitment was made by ADB president Masato Kanda after he called on Prime Minister Narendra Modi here today.

 "The Viksit Bharat 2047 vision is bold, and @ADB_HQ is supporting that ambition. We will direct $10 billion, including third-party capital, over the next five years into municipal infrastructure development, extending metro networks, building new Regional Rapid Transit System corridors, and modernising city services. I was pleased to convey this during my meeting with Prime Minister Narendra Modi @narendramodi in New Delhi," Kanda said on X.

PM also took to X to speak about what he described as a wonderful meeting. "Had a wonderful meeting with Masato Kanda, in which we shared perspectives on a wide range of issues. India’s rapid transformation over the last decade has empowered countless people and we are working to add further momentum in this journey," said the Prime Minister. 

Kanda said India is a founding ADB member since 1966 and the bank's largest borrower and a steadfast partner. "By scaling up public and private sector finance, deepening knowledge collaboration, and mobilising capital, we stand ready to support India’s drive to become a developed nation by 2047 and to deliver inclusive, resilient, and sustainable growth for its 1.4 billion people," he said.

The Asian Development Bank later in a statement said President Kanda had announced a 5-year initiative aimed at transforming urban infrastructure across India, directing up to $10 billion, including third-party capital, into urban transformation including metro extensions, new regional rapid transit system (RRTS) corridors, and urban infrastructure and services.

“Cities are engines of growth,” Kanda said after meeting PM Modi. The plan includes sovereign loans, private sector financing, and third-party capital. The initiative is anchored by India’s flagship Urban Challenge Fund (UCF), which ADB is supporting to attract private investment for urban infrastructure. Completed analytical work on growth hubs, creative city redevelopment, and water and sanitation upgrades in 100 cities across India is laying the groundwork for the UCF. ADB is also committing $3 million in technical assistance to design bankable projects and strengthen the capacity of states and urban local bodies.

ADB said India’s towns and cities are projected to house more than 40 per cent of the population by 2030. "ADB has already worked with more than 110 cities across 22 states on water supply, sanitation, housing, and solid-waste management projects, and the active urban portfolio totals 27 loans worth $5.15 billion. On urban transport, over the past decade, ADB has committed $4 billion for metro projects and RRTS covering 300 km in eight cities, including the Delhi–Meerut RRTS, Mumbai Metro, Nagpur Metro, Chennai Metro, and Bengaluru Metro, cutting congestion and emissions while widening access for vulnerable populations, including people with disabilities," the institution said.

ADB said it would also invest in skills development through the National Industrial Training Institute Upgradation Programme to boost the manufacturing sector, catalyse private sector growth, and create quality jobs, especially for India’s youth.

During his visit, ADB president also met Finance Minister Nirmala Sitharaman to discuss expanding metro networks including transit-oriented development (TOD), supporting rural prosperity, scaling rooftop-solar capacities, and operationalising the UCF. 

In addition, he met Housing and Urban Affairs Minister Manohar Lal to map next steps for channeling private capital into urban projects, replicating ADB-backed urban transport successes on new corridors, and creating TOD opportunities.

Kanda visited the ADB-supported Delhi–Meerut RRTS corridor, India’s first RRTS, and spoke with women whose livelihoods have improved through project-linked training. 

In Gurugram, he visited the renewable-energy company ReNew to discuss stronger collaboration in renewable energy, followed by a roundtable with chief executives from infrastructure, finance, agriculture, and social sector firms. In that meeting, he emphasized that India’s private sector can provide the scale and dynamism needed to drive India’s growth.

Under ADB’s country partnership strategy for India, 2023–2027, it stands ready to provide more than $5 billion in financing each year, including about $1 billion in non-sovereign operations to catalyse additional private investment.

ADB began operations in India in 1986. As of April 2025, it had committed $59.5 billion in sovereign lending and $9.1 billion in nonsovereign investments. The active sovereign portfolio comprises 81 loans totaling $16.5 billion as of April 2025.