ADB Designs Partnership Strategy With India For 2023-27, To Aid Infrastructure, Urban Development And Job Creation

The Asian Development Bank (ADB) on Tuesday (30 May) announced its commitment to supporting India's key programmes and initiatives focused on urban development — as part of its new country partnership strategy for India.

This includes contributing to the country's flagship projects in areas such as industrial corridors, multimodal logistics systems, urban infrastructure, skill development ecosystem, and small businesses.

“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.

The multilateral bank headquartered in Manila aims to strengthen ties with the country and aid its pursuit of inclusive and climate-resistant growth for the next five years with its new strategy.

“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’s Country Director for India Takeo Konishi said, “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,” as per Business Standard report.

The director added that the new strategy will prioritise on supporting India's climate agenda.

This will involve backing initiatives on energy transition, decarbonisation of the transport sector, climate adaptation measures, and effective disaster risk management.

Additionally, the bank will simultaneously enhance its support for improved education, healthcare, and social protection in India.

It will assist in improving urban livability and rural development while ensuring gender empowerment and environmental sustainability, Konishi said.

ADB acknowledged that India has experienced a swift recovery from the impacts of the Covid-19 pandemic, positioning it as one of the fastest-growing major global economies.

The bank projects a notable economic growth rate of 6.4 per cent in the fiscal year 2024 for India.

According to recent developments, India’s GDP grew 7.2 per cent during the fiscal year 2022-2023 (FY23), surpassing the estimate of 7 per cent projected by the Reserve Bank of India (RBI).

ADB emphasised that India needs to accelerate and sustain inclusive growth by addressing critical challenges in infrastructure, human development, income disparities, regional gaps, and vulnerability to climate change and natural hazards.

India has been a key partner for the ADB — which has already committed $52.6 billion in public sector loans, grants, and technical assistance, as well as $8 billion in private sector investments as of December 2022.