The Asian Development Bank (ADB) on Tuesday said it would contribute to India’s urban-focused flagship programmes and schemes on developing industrial corridors, multimodal logistics systems, urban infrastructure, skill ecosystem, and small businesses as part of a new country partnership strategy for India.
“During 2023–2027, ADB operations in India will focus on accelerating structural transformation and job creation, promoting climate-resilient growth, and deepening social and economic inclusiveness,” the multilateral institution said in a statement, though it provided no details on how exactly the contributions to central and state schemes will pan out, and what the monetary outlay will be.
The new strategy will focus on ADB deepening its engagement with the country and supporting India’s drive for robust, climate-resilient, and inclusive growth.
“This will enable urban areas to unlock their potential as engines of growth, promote industrial competitiveness, and create more jobs in formal manufacturing and services sectors,” it said.
ADB noted that India has quickly rebounded from the impact of Covid-19 pandemic, with economic growth projected at 6.4 per cent in FY24 and now ranks among the fastest-growing major global economies. This is similar to the Centre’s own projection for the current fiscal year of 6.5 percent GDP growth.
ADB said India needs to accelerate and sustain inclusive growth by tackling critical challenges in infrastructure and human development, income and regional disparities, and vulnerability to climate change and natural hazards.
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“Building on our comprehensive consultations with government counterparts, private sector, and other in-country stakeholders, the new strategy aims to help India achieve a higher growth trajectory,” said ADB Country Director for India Takeo Konishi.
ADB will simultaneously increase support for better education, health, and social protection, and will assist improvements in urban livability and rural development while ensuring gender empowerment and environmental sustainability, Konishi said.
ADB will meet these objectives through its public and private sector operations, and by catalyzing public–private partnerships. To complement these interventions, ADB will promote domestic resource mobilization including at the municipal level, gender equality and social inclusion, digitalization and expansion of the innovation ecosystem, and regional cooperation.
India is a key ADB partner. As of the end of December 2022, ADB had committed $52.6 billion in 605 public sector loans, grants, and technical assistance in India, as well as $8 billion in private sector investments, the agency said.
