Asian Development Bank strikes $4bn partnership with India

2 Oct 17

The Asian Development Bank plans to up its annual lending to India to $4bn in an effort to accelerate the country’s economic transformation towards upper middle-income status.

An ADB-backed five-year programme in India has three main focuses: to boost economic competitiveness to create more well-paid jobs; improve access to infrastructure and services; and address climate change and improve climate resilience.

“ADB’s new five-year partnership with India supports the government’s goal of inclusive and sustainable growth grounded by economic structural transformation and job creation, with an increased focus on low-income states,” said Kenichi Yokoyama, ADB country director in India.

“We aim to assist transformative investment, deliver holistic solutions removing sectoral boundaries, and demonstrate high value addition of our assistance in terms of innovation, timeliness, efficiency, and quality.”

A large majority – around 85% – of the loans will be focused on transport, energy and urban infrastructure and services, with other finance aimed at public sector management, agriculture, natural resources and rural development, skills development and urban health.

India has been growing at an average of more than 7% since 2012 and is among the world’s fastest-growing large economies. It has halved its poverty rate since 2004 to 21.9% and has reached most of the Millennium Development Goals. 

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