ADB Pledges $4.26 billion in Sovereign Lending to India in 2025

The Asian Development Bank (ADB) committed $4.258 billion in sovereign lending to India in 2025, covering 16 new projects across multiple sectors.  

The Manila-based lender said the funding was approved during the year to support government programmes at the central and state levels. 

ADB has been a long-term development partner for India and continues to finance projects linked to infrastructure, public services, and sector-specific reforms. 

Break-up of Sector Allocations 

Human and social development accounted for nearly 32% of the newly committed projects, making it the largest share of ADB’s 2025 lending programme. The energy sector followed with around 26% of the total commitments, largely focused on renewable energy projects. 

Urban development formed over 18% of the overall portfolio, while the remaining funding was spread across transport, healthcare, power distribution, and tourism-related projects. 

Skilling and Solar Programmes 

A major allocation included $846 million for PM-SETU, India’s national skilling programme. The funding is intended to support the modernisation of Industrial Training Institutes across several states, with the aim of improving training facilities and employability outcomes. 

ADB also committed $650 million to the PM Surya Ghar Muft Bijli Yojana. The programme focuses on expanding rooftop solar installations across households. 

Urban Infrastructure and Mobility 

ADB approved $775 million for 5 urban projects across Assam, Kerala, Sikkim, and West Bengal, including two projects in West Bengal. These projects are focused on improving basic urban services such as water supply and sanitation. 

In the transport segment, $729 million was committed for the expansion of the Delhi-Meerut regional rapid rail corridor and metro systems in Chennai and Indore, aimed at addressing growing commuter demand. 

Healthcare, Power, and Tourism 

Other approvals included a $398.8 million loan to Assam for healthcare and medical education upgrades. Maharashtra received $460 million to modernise rural power infrastructure and improve solar-powered irrigation systems. 

ADB also extended loans of over $200 million to Meghalaya and Uttarakhand for ecotourism-related projects. 

Read More: IBM To Train 5 Million Indian Youths In AI, Cybersecurity and Quantum By 2030! 

Conclusion 

Alongside lending, ADB continued knowledge and technical support during 2025, including studies for the Ministry of Housing and Urban Affairs linked to urban planning and financing initiatives. 

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