The Asian Development Bank (ADB) committed $4.26 billion in sovereign lending to India in 2025, backing a wide range of projects aimed at strengthening skills, scaling up renewable energy, modernising cities, improving healthcare and promoting sustainable tourism.
Of the 16 newly committed projects, nearly 32% focus on human and social development, underscoring ADB’s emphasis on jobs and employability, the multilateral agency said.
Powering the Future
The energy sector accounts for 26% of the portfolio, largely driven by renewable energy initiatives, while over 18% is directed towards urban development. A key highlight is an $846 million financing package for PM-SETU, the Centre’s flagship skilling programme, which will modernise hundreds of Industrial Training Institutes across states to boost workforce readiness. ADB also committed $650 million to support the PM Surya Ghar Muft Bijli Yojana, aimed at accelerating rooftop solar adoption nationwide.
Scaling Urban Connectivity
Reaffirming its support for India’s urban transformation agenda, ADB approved $775 million for five projects across Assam, Kerala, Sikkim and West Bengal to upgrade water supply, sanitation and other urban services. In addition, $729 million was committed to expand regional rapid rail in the Delhi–Meerut corridor and metro networks in Chennai and Indore, easing congestion and improving urban mobility.
Other major approvals included a $460 million loan to Maharashtra to modernise rural power infrastructure and promote solar-powered irrigation, and a $398.8 million loan to Assam to upgrade healthcare and medical education systems. ADB also extended over $200 million to Meghalaya and Uttarakhand for ecotourism development, $110 million to strengthen Gujarat’s skill ecosystem, and $85 million to upgrade industrial infrastructure in Tripura.
Alongside financing, ADB continued to provide policy and knowledge support. In 2025, it helped the Ministry of Housing and Urban Affairs develop three key frameworks—Creative Redevelopment of Cities, Cities as Growth Hubs, and Water Supply and Sanitation in Indian Cities—which underpin the government’s new Urban Challenge Fund aimed at crowding in commercial finance for city transformation.