On August 29, 2019, Asian Development Bank (ADB) President Mr. Takehiko Nakao met India’s Prime Minister Mr. Narendra Modi in New Delhi and committed over $12 billion in lending to India over the next 3 years (2020-22) in support of new flagship initiatives, averaging annually over $3 billion for sovereign operations and $1 billion for nonsovereign operations.
Key Points:
- Other meetings: He also met Finance and Corporate Affairs Minister Ms. Nirmala Sitharaman, Minister of Road Transport and Highways and Micro, Small, and Medium Enterprises (MSME) Mr. Nitin Gadkari, and Minister of Railways and Commerce and Industry Mr. Piyush Goyal.
- NIIF: He announced a $100 million investment in the National Investment and Infrastructure Fund (NIIF).
- New flagship initiatives: ADB’s sovereign and nonsovereign operations will focus on the government’s major initiatives, including the Jal Jeevan Mission, East Coast Economic Corridor program, promoting competitiveness of micro, small, and medium-sized enterprises (MSME) by connecting to global value chains, supporting national road safety programs; and constructing a rapid rail transit system to connect Delhi with neighboring satellite cities, starting from Delhi to Meerut. It will also expand assistance in secondary education and the universal health system.
- Growth estimation: ADB estimates India’s growth in 2019 at 7.0% and in 2020 at 7.2%.
- Sovereign lending in 2018: ADB’s sovereign lending to India in 2018 reached $3.0 billion.
- SASEC 2020: India is hosting the first South Asia Subregional Economic Cooperation (SASEC) Finance Ministers’ meeting in March 2020.
ADB publication
On August 30, 2019, Mr. Takehiko Nakao also attended the launch of an ADB publication in Kolkata, West Bengal. The event showcased ADB’s 20-year partnership with the Kolkata Municipal Corporation. The partnership has been helping improve the Kolkata’s water supply, sewerage, and drainage systems, and also building resilience through the introduction of early flood warning system.
About ADB:
♦ Headquarters: Mandaluyong, Manila, Philippines
♦ Founded: 19 December 1966
♦ Membership: 67 countries