ADB’s $10 Billion Boost to Transform Urban India’s Future

India’s urban landscape is set for a dramatic transformation as the Asian Development Bank (ADB) commits up to $10 billion over the next five years to accelerate metro expansion, urban infrastructure, and private investment across 100 Indian cities. This landmark initiative, announced by ADB President Masato Kanda after meeting Prime Minister Narendra Modi, aims to propel India’s cities as engines of growth and lay the foundation for “Viksit Bharat” by 2047.

Strategic Vision for Urban Growth

ADB’s five-year plan is anchored by India’s flagship Urban Challenge Fund (UCF), designed to mobilize sovereign loans, private sector financing, and third-party capital to attract private investment into urban infrastructure. Foundational work is already underway, with analytical studies on growth hubs, creative city redevelopment, and water and sanitation upgrades in 100 cities laying the groundwork for the UCF.

Key Focus Areas

• Metro and Transit Expansion: ADB will support metro network extensions and new Regional Rapid Transit System (RRTS) corridors, building on its $4 billion investment in metro and RRTS projects across eight cities—including Delhi, Mumbai, Nagpur, Chennai, and Bengaluru—over the past decade.
• Urban Services and Redevelopment: The plan targets upgrades in water supply, sanitation, solid-waste management, and housing, with 27 active loans worth $5.15 billion already in play across 110 cities in 22 states.
• Private Sector Participation: The UCF and ADB’s technical assistance ($3 million committed) will help design bankable projects and strengthen the capacity of states and urban local bodies, attracting private capital to city infrastructure.
• Skills and Jobs: Investment in the National Industrial Training Institute Upgradation Program will boost manufacturing, create jobs, and support India’s youth, with a focus on inclusive growth and improved livelihoods.

Impact and Future Outlook

With India’s urban population projected to surpass 40% by 2030, this initiative is crucial for meeting the demands of rapid urbanization. ADB’s support will help reduce congestion, cut emissions, and improve access for vulnerable populations, including people with disabilities. The bank’s ongoing partnership with India includes $59.5 billion in sovereign lending and $9.1 billion in non-sovereign investments since 1986, with an active portfolio of 81 loans totaling $16.5 billion as of April 2025.

ADB’s commitment also extends to catalyzing more than $5 billion in annual financing for India, including up to $1 billion for non-sovereign projects to further encourage private sector participation. As India pursues its vision of sustainable, inclusive, and resilient urban growth, ADB’s strategic investment marks a pivotal step in shaping the cities of tomorrow.