Asian Development Bank extends record $4.6 billion loans to India in 2021


The Asian Development Bank (ADB) said on Sunday it had provided a record $4.6 billion in loans to India in 2021, including $1.8 billion for the coronavirus response.

“The Asian Development Bank has committed a record $4.6 billion in sovereign lending to India in 2021 for 17 loans, including $1.8 billion for the response to the coronavirus disease (COVID- 19) of the country,” the multilateral funding agency said in a statement.

Of the COVID-19 aid, $1.5 billion was for the purchase of vaccines and $300 million for strengthening primary health care in urban areas and the country’s future preparedness for the pandemic. pandemic.

AfDB’s regular financing program in India is designed to support transport, urban development, finance, agriculture and skills building.

AfDB Country Director for India, Takeo Konishi, said: “AfDB operations continue to support the Government of India’s fight against COVID-19 and its other development priorities such as managing urbanization. , increasing industrial competitiveness to create more jobs, improving connectivity and building skills.

Konishi added that to maximize the development impact of its operations, the AfDB takes a multidisciplinary approach and integrates Finance Plus elements based on its comparative advantage, knowledge base and added value.

He said the AfDB will continue to support less developed states through the provision of basic infrastructure and institutional capacity building while pursuing transformative investments in economically more advanced states.

The agency has given $2.2 billion in support to 12 state projects, mindful of its geographically balanced programming.

The funding body said its strategic engagement with states will include knowledge support to navigate their emerging development challenges.

The AfDB’s project portfolio in 2021 reflected the Government of India’s focus on transforming cities into economically vibrant and sustainable communities.

This included funding India’s National Urban Flagship Missions to improve access to water, sanitation and affordable housing and promote performance-based fiscal transfer to urban local bodies; improving mobility through the expansion of the metro network in Bangalore; and strengthening flood risk management in urban areas of Chennai.

Support to the government’s National Industrial Corridor Development Program will help improve the competitiveness of the country’s manufacturing sector, while a connectivity improvement project will boost industrial development in the AfDB-supported Chennai-Kanyakumari Industrial Corridor.

Other projects fund improved rural connectivity, development of agribusiness networks, establishment of a skills university to promote industry-aligned skills and capacity building for project design, a said the AfDB.

The AfDB’s India portfolio comprised 69 projects worth USD 15.5 billion as of December 31, 2021.

In addition to sovereign loans, the AfDB has also committed USD 274 million to private sector projects in 2021 for COVID-19 support, highway improvements, energy efficiency, affordable housing and increased services. farmers’ income.

Going forward, Konishi said the AfDB will help India’s rapid, green and inclusive economic recovery from the pandemic with increased investments in health and education; micro, small and medium enterprises; public sector management and climate initiatives.

(Only the title and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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