The Asian Development Bank (ADB) provided a record USD 4.6 billion in sovereign lending to India in 2021 for 17 loans, including USD 1.8 billion towards coronavirus (COVID-19) response.
- Out of 1.8 billion COVID-19-related assistance, USD 1.5 billion was towards vaccine procurement and USD 300 million was to strengthen primary health care (PHC) in urban areas for future preparedness.
About ADB funding:
i.The ADB’s regular funding programme to India is made to support transport, urban development, finance, agriculture, and skills building.
ii.ADB adopts a multidisciplinary approach and incorporates Finance Plus elements based on its comparative advantage, knowledge base and value addition to maximise the development impact of its operations.
- ADB has extended a USD 2.2-billion support for 12 state projects, committed to its geographically balanced programming and its strategic engagement includes knowledge support to navigate emerging development challenges.
i.The major ADB’s funding for India in 2021 included the project portfolio of transforming cities into economically vibrant and sustainable communities.
- This included India’s national urban flagship missions to enhance access to water, sanitation, and affordable housing and promote performance-based fiscal transfer to urban local bodies; enhancing mobility through metro network expansion in Bengaluru; and strengthening flood-risk management in Chennai’s urban areas.
- Funding towards the National Industrial Corridor Development Programme will improve the manufacturing competitiveness and the ADB-supported Chennai-Kanyakumari Industrial Corridor connectivity improvement project will stimulate industrial development.
ADB’s project funding also includes rural connectivity improvement, agribusiness network development, the establishment of a skills university to promote industry-aligned skills, and capacity building for project design.
i.The ADB’s India portfolio comprised 69 projects worth USD 15.5 billion as of 31st December 2021.
ii.ADB also committed USD 274 million to private sector projects in 2021 for COVID-19 support, highways improvement, energy efficiency, affordable housing and increasing farmer incomes.
iii.In future, ADB will assist India’s fast, green and inclusive economic recovery from the COVID-19 pandemic by expanding investments in health and education; micro, small, and medium-sized enterprises (MSMEs); public sector management and climate initiatives.
Recent related News:
Asian Development Bank (ADB) has trimmed the Gross Domestic Product (GDP) growth forecasts for developing Asia for 2021-2022 in its Asian Development Outlook Supplement Report of December 2021, to 7 percent, down from its earlier projection of 7.1 percent (September 2021), and 2022 growth to 5.3 percent, down from 5.4 percent.
About Asian Development Bank (ADB):
Established – 1966
Headquarters – Manila, Philippines
President – Masatsugu Asakawa
ADB Country Director for India – Takeo Konishi
Member Countries – 68 members (49 from Asia and Pacific regions)