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.

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.

Source: financialexpress