ADB announces $10 billion funding for India’s urban infrastructure

Asian Development Bank (ADB) President Masato Kanda has announced investing USD 10 billion, including third-party capital, for India's urban transformation, including metro extensions, new regional rapid transit system (RRTS) corridors, and urban infrastructure and services.

ADB disclosed in a statement on Sunday that it is a five-year initiative.

"Cities are engines of growth," ADB President Kanda said after meeting Prime Minister Narendra Modi in the national capital. "ADB will mobilize capital, accelerate delivery, and scale solutions that keep India's urban economy moving and people thriving on the road to Viksit Bharat @ 2047," the ADB President added.

The initiative is backed by India’s flagship Urban Challenge Fund (UCF), which ADB is supporting to draw private investment for urban infrastructure.

UCF is doing analytical work on growth hubs, creative city redevelopment, and water and sanitation upgrades in 100 cities across India. 

ADB has committed an additional $3 million in technical assistance to help design bankable projects and enhance the institutional capacity of states and urban local bodies.

ADB President meets FM & Urban Affairs Minister

During his visit, Kanda also met the Finance Minister Nirmala Sitharaman to discuss expanding metro networks, including transit-oriented development (TOD) supporting rural prosperity, scaling rooftop solar capacity, and operationalising the UCF.

He also met the Housing and Urban Affairs Minister Manohar Lal on mobilising private capital for urban projects, replicating ADB-backed urban transport successes, and creating new TOD opportunities.

ADB began operations in India in 1986. Currently, it has made a country partnership strategy with India for the span of 2023-2027.

Under the pact, it is ready to provide more than USD 5 billion in financing each year, including about USD 1 billion in non-sovereign operations to catalyse additional private investment.

As of April 2025, the multilateral development bank had committed USD 59.5 billion in sovereign lending and USD 9.1 billion in non-sovereign investments.

The active sovereign portfolio comprises 81 loans totalling USD 16.5 billion as of April 2025.

Founded in 1966, ADB is owned by 69 members — 50 from the region.

Also read: India to roll out its first indigenous 28-90 nanometer semiconductor chip in 2025: Ashwini Vaishnaw (startuppedia.in)