Asian Development Bank to provide up to $9 bn loan to India over 3 yrs

Aug 28 2014, 06:04 IST
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Asian Development Bank today said it will provide up to 7-9 billion loan to the country over the next three years. (Reuters) Asian Development Bank today said it will provide up to 7-9 billion loan to the country over the next three years. (Reuters)
SummaryAsian Development Bank today said it will provide up to 7-9 billion loan to India over the next three years.

Committing to support infrastructure development in India, Asian Development Bank today said it will provide up to 7-9 billion loan to the country over the next three years.

"ADB's operations for India will maintain high level of lending, amounting to a total of USD 7-9 billion over the next three years," ADB president Takehiko Nakao said here.

Besides, the multilateral funding agency will provide around USD 30 million for technical assistance grants, especially for building institutions and capacity at the state as well as the local levels, he said.

Nakao, who is on two-day official visit, met Prime Minister Narendra Modi and Finance Minister Arun Jaitley and discussed macroeconomic situation and ADB's funding programme to boost infrastructure sector.

During the meeting, he emphasised that ADB will help India accelerate infrastructure development, boost manufacturing, improve skills of the young people to enhance their employability, expand trade through regional cooperation, and promote private sector activities.

Stressing that India has a potential to grow at 10 per cent, Nakao said its economy is expected to expand at 5.5 per cent in the current fiscal. For the next fiscal, it has projected a better growth rate of 6.3 per cent in 2015-16.

"To get back to a high growth path of 8 to 9 per cent, it is also crucial to implement investment-friendly reforms being initiated by the government," he said.

Easing the regulatory burden on industry by eliminating red tape and promoting inter-agency coordination, enabling single window clearance mechanisms, and reviewing land acquisition procedures should be part of the national strategy to attract local and foreign investors, he said.

"Together with efforts to build world class infrastructure and skills, these steps would create the job opportunities needed to absorb India's youthful and growing labor force and ensure that growth is inclusive," he added.

During the meeting with Nakao, Modi said that FDI is a focus area which he is committed to, according to an official statement.

He said 'Make in India' is not a slogan for improvement but a firm commitment and the country will demonstrate the commitment through actions.

"ADB president was particularly touched by the Prime Minister's emphasis on change, removing silos within government, improving co-ordination and focusing on results," said the statement.

The Prime Minister remarked that he has had a good experience with ADB in Gujarat during the earthquake reconstruction, it said.

Nakao said he was trying to do the

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