India leading recipient of ADB funding in 2018

The regional development bank’s president, Takehiko Nakao, said that India would receive sovereign loans worth more than US$3 billion during 2019

May 2, 2019

The announcement was made at the 52nd Annual Meeting of ADB’s Board of Governors in Fiji

During 2018, ADB had committed a total of US$21.6 billion in loans, grants and investments

Set up in 1966, ADB is run by 68 member states and posted income of US$750 million in 2018

In March 2019, ADB and GoI signed a US$926 million loan - bank’s single largest infra funding

India has emerged as the leading recipient of funding from the Asian Development Bank (ADB), as per a report by the Press Trust of India (PTI) on May 2, citing the Asia-focussed development bank’s president, Takehiko Nakao. ADB committed around US$3 billion in sovereign funding to India in 2018 – the largest volume of funding assistance since sovereign operations began in India in 1986, PTI reported. This made up 25 per cent of total loans approved by the bank during the year. Mr Nakao added that India would receive sovereign loans worth more than US$3 billion during 2019. The announcement was made during the 52nd Annual Meeting of ADB’s Board of Governors in Nadi, Fiji.

During 2018, ADB had committed a total of US$21.6 billion in loans, grants and investments. This was 10 per cent higher than 2017, and exceeded the target of US$19.7 billion. The Philippines-based bank would continue to support projects related to rural connectivity, water and sanitation, urban infrastructure, skill development, among others, Mr Nakao said. While picking projects for funding, ADB balances the ones that offer good returns with those that seek to alleviate socio-economic and environmental challenges. ADB has committed financing for several projects across India, including in Maharashtra, Bihar, Himachal Pradesh, Madhya Pradesh, Karnataka, Tamil Nadu, Assam and Odisha.

In March 2019, ADB and the Government of India had signed a US$926 million loan deal to support work on two lines of the Mumbai metro rail system, marking the single largest infrastructure project funding in ADB’s history. Last year, ADB had committed to building 6,254 km of all-weather rural roads in the states of Assam, Chhattisgarh, Madhya Pradesh, Odisha, and West Bengal. Such projects target improvement of rural connectivity, facilitating more efficient access to livelihood, and other socio-economic opportunities for rural communities through improvement of about 12,000 km of rural roads. Set up in 1966, ADB is run by 68 member states and reported net income of US$750 million in 2018.

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