The Asian Development Bank has committed more than $5 billion to India in 2025 to support projects related to skills development, clean energy, transport, urban infrastructure, healthcare, and sustainable tourism.
According to the ADB, the total commitment includes:
- $4.238 billion in sovereign lending, and
- $1.06 billion for private sector operations.
The funding reflects the strengthening development partnership between India and the ADB ahead of the completion of 40 years of cooperation in 2026.
Focus Areas of ADB Support
ADB stated that nearly one-third of the 16 newly approved sovereign projects are focused on human and social development. Other major focus areas include:
- renewable energy,
- urban transformation,
- transport infrastructure,
- healthcare,
- and climate-focused development in lagging states.
Mio Oka said the bank remains committed to supporting India’s development priorities, particularly in:
- workforce skilling,
- clean energy deployment,
- and urban transformation.
She also announced that ADB will begin preparations in 2026 for its next country partnership strategy covering the period 2028–2032, with emphasis on transformational and multi-sector projects supported by private sector participation.
Major Projects Supported by ADB in 2025
PM Skilling Scheme for ITI Upgradation (PM SETU)
- ADB approved $846 million for the PM Skilling Scheme for ITI Upgradation, also known as PM SETU.
- The initiative aims to modernise Industrial Training Institutes (ITIs) and improve employability and workforce readiness.
PM Surya Ghar Muft Bijli Yojana
- ADB committed $650 million to support the PM Surya Ghar Muft Bijli Yojana.
- The programme focuses on expanding rooftop solar installations and promoting clean energy adoption across India.
Urban Infrastructure Projects
ADB allocated $775 million for five urban infrastructure projects in:
- Assam,
- Kerala,
- Sikkim,
- and West Bengal.
These projects are intended to improve urban services and infrastructure.
Transport Infrastructure
The bank approved $709 million for:
- expansion of the Delhi-Meerut Regional Rapid Transit System,
- metro projects in Chennai,
- and metro expansion in Indore.
These projects aim to improve urban mobility and reduce congestion.
Other Key Investments
Additional ADB commitments include:
- $460 million for rural power modernisation in Maharashtra,
- $398.8 million for healthcare and medical education projects in Assam,
- over $200 million for ecotourism projects in Meghalaya and Uttarakhand,
- $110 million to strengthen Gujarat’s skills ecosystem,
- and $85 million for industrial infrastructure development in Tripura.
Expanding Private Sector Operations
In addition to sovereign financing, ADB committed $1.06 billion from its own resources for private sector projects and mobilised another $1.1 billion.
Private sector support is focused on:
- sustainable infrastructure,
- energy,
- transport,
- water and urban development,
- healthcare,
- education,
- financial institutions,
- and agribusiness.
Knowledge and Policy Support
ADB also continued providing policy and knowledge support to India during 2025.
The bank worked with the Ministry of Housing and Urban Affairs to develop three urban development 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 attracting commercial financing for urban transformation projects across Indian cities.
India–ADB Partnership
ADB has been operating in India since 1986. Over the years, it has committed:
- more than $63 billion to public sector projects,
- and over $10 billion to private sector operations.
The latest commitments reaffirm ADB’s important role in supporting India’s infrastructure development, clean energy transition, urban modernisation, and human capital development.