The Asian Development Bank (ADB) has announced a significant financial commitment to India's development agenda for the year 2025. The multilateral lender will provide $4.258 billion in sovereign lending to fund a diverse range of critical projects across the country. This substantial investment, confirmed on Friday, targets key sectors including workforce development, clean energy, urban infrastructure, and healthcare.
Focus on Human Development and Clean Energy
An analysis of the 16 new projects approved for the year reveals a clear strategic direction. Nearly 32% of the portfolio is dedicated to human and social development, while the energy sector, with a primary focus on renewable sources, accounts for about 26%. Urban development projects make up over 18% of the committed funds.
At the heart of the 2025 lending program is an $846-million financing initiative for PM-SETU, India's flagship skilling programme. This project is designed to modernise hundreds of Industrial Training Institutes (ITIs) across various states, directly aiming to enhance employability and prepare the workforce for future demands.
In a major push for green energy, ADB is also allocating $650 million to support the PM Surya Ghar Muft Bijli Yojana. This national rooftop solar programme seeks to dramatically increase the adoption of solar power at the household level throughout India, promoting energy independence and sustainability.
"We are proud that ADB's 2025 portfolio supported India's priority development agenda, focusing on workforce skilling for jobs, clean energy deployment, and driving transformative urban growth," stated ADB Country Director for India, Mio Oka. She added that these initiatives underscore the bank's steadfast commitment to fostering inclusive and sustainable economic growth in the region.
Boosting Urban Infrastructure and Regional Connectivity
Reaffirming its role in India's urban transformation, ADB has committed $775 million for five urban projects in the states of Assam, Kerala, Sikkim, and West Bengal. These investments are specifically aimed at upgrading and expanding essential urban services, with a strong emphasis on improving water supply and sanitation systems for residents.
The transport sector receives a significant boost with a $729 million commitment to enhance regional connectivity. This funding will support the expansion of the regional rapid rail system on the Delhi-Meerut corridor and extend metro networks in the cities of Chennai and Indore. The objective is to improve urban mobility, alleviate traffic congestion, and manage the challenges posed by rapid urbanisation.
Healthcare, Power, and Ecotourism Initiatives
Beyond the major focal areas, the ADB's 2025 lending package includes several other crucial projects:
- $460 million to Maharashtra for modernising rural power infrastructure and strengthening solar electricity supply for agricultural irrigation.
- $398.8 million to Assam to upgrade its healthcare services and medical education systems, aiming for better public health outcomes.
- Loans exceeding $200 million to Meghalaya and Uttarakhand to promote and develop ecotourism, fostering sustainable economic opportunities in these regions.
Alongside direct financing, ADB continues its advisory role by providing policy and knowledge support. In 2025, this included assisting the Ministry of Housing and Urban Affairs in developing three key knowledge frameworks. These frameworks, focusing on the creative redevelopment of cities, positioning cities as growth hubs, and improving urban water supply and sanitation, will form the foundation for the government's new urban challenge fund.
Founded in 1966, the Asian Development Bank is owned by 69 members, with 50 hailing from the Asia-Pacific region. Its core mission is to support inclusive, resilient, and sustainable growth across Asia.
