The Asian Development Bank (ADB) will invest $10 billion over five years to transform India’s urban infrastructure, targeting metro rail expansions, rapid transit corridors, and smarter city services. Announced by ADB President Masato Kanda after meetings with Prime Minister Narendra Modi, this initiative aims to fuel India’s journey toward becoming a developed nation by 2047.
What the Plan Includes
The funding includes government-backed loans, private investments, and third-party capital. A key focus is India’s Urban Challenge Fund, designed to attract private funding for projects like water supply upgrades, waste management, and creative city redesigns in 100 cities. ADB has already mapped strategies for these cities and will provide $3 million in technical aid to help local governments plan viable projects.
Tackling Urban Growth Pressures
By 2030, over 40% of India’s population will live in cities. To manage this surge, ADB is prioritizing urban transit. Over the past decade, it has funded 300 km of metro and rapid rail lines in eight cities, including Delhi, Mumbai, and Bengaluru. These projects are focused on cutting traffic congestion, reducing emissions, and improving access for marginalized groups, such as persons with disabilities.
During his visit, Kanda toured Gurugram-based ReNew Power to explore renewable energy partnerships. He also took a ride on the Delhi-Meerut Rapid Rail, India’s first regional transit system, and met women who secured jobs through skills training linked to the project.
High-Level Government Talks
Kanda discussed rural development and rooftop solar projects with Finance Minister Nirmala Sitharaman. The Minister of Housing and Urban Affairs, Manohar Lal Khattar, outlined plans to replicate transit successes in new cities and develop housing around metro hubs.
Jobs and Skills for Youth
ADB will collaborate with industrial training institutes to upgrade skills in manufacturing, aiming to create quality jobs for India’s youth. “India’s private sector can drive the scale needed for growth,” Kanda said during a meeting with business leaders.
ADB’s 40-Year Partnership with India
Since 1986, ADB has committed $59.5 billion to India, including $9.1 billion in private investments. Current active projects span 81 loans worth $16.5 billion, focusing on sustainable infrastructure and inclusive growth. This historic investment highlights ADB’s confidence in India’s urban future, blending innovation and equity to build cities that thrive.
