ADB's Investment in India's Future: $4.26 Billion in 2025

ADB's $4.26 Billion Sovereign Lending to India in 2025

The Asian Development Bank (ADB) has committed a significant amount of $4.26 billion in sovereign lending to India for the year 2025. This funding will support various projects focused on skilling, clean energy, urban development, transport, healthcare, and tourism. The financial assistance is closely aligned with India’s priority development goals and long-term growth strategy.

Overview of ADB’s 2025 Lending

In 2025, ADB approved a total of 16 new sovereign projects aimed at strengthening human capital, accelerating the adoption of renewable energy, modernizing urban environments, and enhancing essential services across the country.

Sector-wise Distribution of Projects

• Human & Social Development: Approximately 32%
• Energy (mainly renewables): Nearly 26%
• Urban Development: Over 18%

Major Projects Supported by ADB

ADB’s lending portfolio in 2025 includes several high-impact initiatives at both national and state levels:

• PM-SETU Skilling Programme: $846 million to modernize Industrial Training Institutes (ITIs) across states, focusing on employability, workforce readiness, and skill development.
• PM Surya Ghar Muft Bijli Yojana: $650 million to expand rooftop solar adoption, promoting clean energy and reducing household electricity costs.
• Urban Infrastructure Development: $775 million allocated for five projects in Assam, Kerala, Sikkim, and West Bengal, targeting improvements in water supply, sanitation, and urban services.
• Metro and Rapid Rail Expansion: $729 million for projects including the Delhi to Meerut RRTS and metro expansions in Chennai and Indore, enhancing mobility and reducing urban congestion.

Support for Power, Healthcare, and Tourism

Beyond these major initiatives, ADB’s 2025 lending also addresses key social and regional development sectors:

• Maharashtra Rural Power Infrastructure: $460 million to modernize rural power networks and improve solar-powered irrigation systems.
• Healthcare in Assam: $398.8 million towards upgrading healthcare services and medical education.
• Ecotourism Development: Over $200 million for projects in Meghalaya and Uttarakhand, promoting sustainable tourism and enhancing local livelihoods.

Background: ADB and India

ADB has been a long-term development partner for India, providing support for infrastructure projects, energy transitions, urban reforms, and social sector initiatives. Since its founding in 1966, ADB has focused on fostering inclusive, resilient, and sustainable growth, and has increasingly aligned its funding with India's evolving priorities, such as clean energy and job creation.

Key Takeaways

• Total ADB Lending (2025): $4.26 billion
• Skilling Focus: $846 million for PM-SETU
• Clean Energy: $650 million for rooftop solar scheme
• Urban Projects: $775 million across four states
• Transport: $729 million for metro and rapid rail initiatives

Frequently Asked Questions (FAQs)

Q1. What is the total amount committed by ADB to India in 2025?
Answer: ADB has committed $4.26 billion in sovereign lending to India for various development projects in 2025.

Q2. What are the main focus areas of ADB's funding in India?
Answer: ADB's funding focuses on skilling, clean energy, urban development, transport, healthcare, and tourism initiatives.

Q3. How many projects did ADB approve for India in 2025?
Answer: ADB approved a total of 16 new sovereign projects for India in 2025, aimed at enhancing human capital and infrastructure.

Q4. What is the PM-SETU Skilling Programme?
Answer: The PM-SETU Skilling Programme is a $846 million initiative by ADB to modernize Industrial Training Institutes (ITIs) and improve workforce readiness.

Q5. How much funding is allocated for urban infrastructure development?
Answer: ADB has allocated $775 million for urban infrastructure development projects across states like Assam, Kerala, Sikkim, and West Bengal.

UPSC Practice MCQs

Question 1: What is the total ADB lending amount to India for 2025?
A) $3 billion
B) $4.26 billion
C) $5 billion
D) $6 billion
Correct Answer: B

Question 2: Which program focuses on skill development in India?
A) PM Surya Ghar Muft Bijli Yojana
B) PM-SETU Skilling Programme
C) Ecotourism Development
D) Urban Infrastructure Development
Correct Answer: B