ADB’s Five-Year Plan for Urban Infrastructure in India
Asian Development Bank (ADB) President Masato Kanda announced a transformative five-year plan aimed at enhancing urban infrastructure across India. This initiative will mobilise up to $10 billion, including third-party capital. The plan focuses on metro expansions, new Regional Rapid Transit System (RRTS) corridors, and sustainable urban development. Kanda emphasised the role of cities as growth engines for India’s economy.
Key Features of the Initiative
The initiative is anchored by the Urban Challenge Fund (UCF). This fund aims to attract private investment in urban infrastructure. ADB plans to channel funds through sovereign loans, private sector financing, and technical assistance. A total of $3 million is earmarked for developing bankable projects and enhancing the capacity of state and urban local bodies.
Urban Transport and Clean Energy Focus
India’s urban population is projected to exceed 40% by 2030. To address this growth, ADB has committed $4 billion over the past decade for metro and RRTS projects in eight cities. These projects include the Delhi–Meerut RRTS, Mumbai Metro, and Chennai Metro. They aim to alleviate congestion and improve accessibility for marginalised communities, including persons with disabilities.
Rural Development Commitment
In addition to urban projects, ADB is committed to rural development. This includes initiatives in food systems, entrepreneurship, and job creation. Kanda reiterated ADB’s readiness to lend between $4 billion and $4.5 billion annually in sovereign loans, alongside $1 billion in private sector funding.
Long-Term Partnership with India
ADB has a long-standing relationship with India, having begun operations in 1986. Under its country partnership strategy for 2023–2027, ADB is prepared to provide over $5 billion in financing each year. This includes about $1 billion in non-sovereign operations to stimulate additional private investment. As of April 2025, ADB has committed $59.5 billion in sovereign lending and $9.1 billion in non-sovereign investments.
Strategic Engagements
During his visit, Kanda met with key Indian officials, including Finance Minister Nirmala Sitharaman. Discussions included expanding metro networks, supporting rural prosperity, and scaling rooftop solar projects. Kanda also visited the ADB-supported Delhi–Meerut RRTS corridor and engaged with women benefiting from project-linked training.
Innovative Financing for Growth
ADB aims to harness innovative financial tools and strategic partnerships to address complex challenges in urban and rural development. By engaging with CEOs from various sectors, ADB seeks to attract greater private participation in infrastructure growth.
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