The Asian Development Bank (ADB) committed $4.26 billion in sovereign lending to India in 2025, approving funding for 16 new projects across multiple sectors to support programmes at both central and state government levels. The Manila-based lender said the approvals reflect its continued role as a long-term development partner for India, with financing directed towards infrastructure creation, public service delivery and sector-specific reforms.

Human and social development accounted for nearly 32 per cent of the newly committed projects, making it the largest share of ADB’s 2025 lending programme. The energy sector followed with around 26 per cent of total commitments, largely focused on renewable energy initiatives. Urban development constituted more than 18 per cent of the overall portfolio, while the remaining funding was distributed across transport, healthcare, power distribution and tourism-related projects.

A significant portion of the lending included $846 million for PM-SETU, India’s national skilling programme, aimed at modernising Industrial Training Institutes across several states to improve training quality and employability outcomes. ADB also committed $650 million to the PM Surya Ghar Muft Bijli Yojana, which focuses on expanding rooftop solar installations across households.

In urban infrastructure, ADB approved $775 million for five projects across Assam, Kerala, Sikkim and West Bengal, including two projects in West Bengal, primarily targeting improvements in water supply and sanitation services. In the transport segment, $729 million was committed for the expansion of the Delhi–Meerut regional rapid rail corridor and metro systems in Chennai and Indore to meet rising commuter demand.

Other approvals included a $398.8 million loan to Assam for healthcare and medical education upgrades, while Maharashtra received $460 million to modernise rural power infrastructure and strengthen solar-powered irrigation systems. ADB also extended loans exceeding $200 million to Meghalaya and Uttarakhand for ecotourism-related projects. Alongside financial assistance, the bank continued to provide knowledge and technical support during 2025, including studies for the Ministry of Housing and Urban Affairs focused on urban planning and financing initiatives.