ADB Financing to India Hits $3B in FY 2025‑26 for Development
India Leverages ADB Support for Skilling, Renewable Energy, Metro
New Delhi: The Government of India and the Asian Development Bank (ADB) have signed loan agreements totalling over US$2.2 billion to finance development projects across multiple sectors, reflecting India’s continued engagement with multilateral partners to accelerate national priorities. The agreements, signed in December 2025, encompass initiatives in skills development, renewable energy, healthcare, urban transport, and sustainable livelihoods, spanning three states and multiple national flagship programmes.
The loan agreements were finalised under the guidance of Baldeo Purushartha, Joint Secretary for ADB and Japan in the Department of Economic Affairs, with Saurabh Singh, Deputy Secretary in the Department of Economic Affairs, signing on behalf of the Indian government, and Aarti Mehra, Officer-in-Charge and Deputy Country Director of ADB’s India Resident Mission, representing the bank.
The largest portion of the financing, US$846 million, will support the Pradhan Mantri Skilling and Employability Transformation through Upgraded Industrial Training Institutes (ITIs) Programme. This initiative will modernise 650 ITIs across 12 states and upgrade five National Skill Training Institutes into centres of excellence, delivering demand-driven courses in emerging sectors such as renewable energy, electric mobility, and advanced manufacturing. The programme is expected to improve employability for at least 1.3 million youth, helping India create a future-ready workforce for its high-growth industries.
The US$650 million Accelerating Affordable and Inclusive Rooftop Solar Systems Development Programme (Subprogramme 1) will expand the ‘Pradhan Mantri Surya Ghar: Muft Bijli Yojana‘, targeting rooftop solar adoption for 10 million households by 2027. The programme promotes regulatory reforms, standardisation of residential rooftop systems, and collateral-free low-interest loans to facilitate adoption among low- and middle-income households, advancing India’s transition to clean and affordable energy.
In the healthcare sector, the Assam State Tertiary Health Care Augmentation Project, with financing of US$398.8 million, aims to modernise medical colleges in Guwahati, Dibrugarh and Silchar, establishing centres of excellence under the Srimanta Sankaradeva University of Health Sciences. The project addresses gaps in tertiary care and strengthens medical education infrastructure in the northeastern state.
Urban mobility will benefit from the Chennai Metro Rail Investment Project (Tranche 2), receiving US$240 million to extend 20 km of elevated and underground corridors and develop 18 new stations equipped with universal access features and climate-resilient infrastructure, improving passenger safety and operational reliability during extreme weather events.
The Integrated Ecotourism and Sustainable Agri-based Livelihood Development in Meghalaya Project, financed with US$77 million, integrates nature-based tourism with climate-smart agriculture and forest conservation. The initiative aims to create economic opportunities for over 8,000 beneficiaries, including women and indigenous communities, while positioning Meghalaya as a leading ecotourism destination.
These December agreements bring India’s total confirmed ADB sovereign loan commitments in the current fiscal year (FY 2025‑26) to over US$3 billion, including approximately US$800 million signed in November 2025 for solarisation, metro rail, and skill development initiatives in Maharashtra, Gujarat and other states. ADB’s broader lending framework allows up to US$4–4.5 billion in sovereign loans annually to India, with additional private-sector financing of about US$1 billion, placing the current signings within the bank’s expected annual engagement envelope.
Analysts note that while ADB disbursements occur over the life of each project, commitments indicate the scale of international development finance supporting India’s growth priorities. The loans signal a deliberate policy push to combine infrastructure expansion, human capital development, renewable energy adoption, and sustainable livelihood enhancement, ensuring that India leverages multilateral financing to achieve both economic and social outcomes.
This tranche of financing underscores India’s strategic engagement with the ADB and highlights the increasing role of multilateral institutions in supporting the country’s urban, social, and green transition objectives, while complementing domestic budgetary allocations for priority sectors.
– global bihari bureau
