ADB President meets PM, proposes $25 bn for India's development priorities

ADB President Masatsugu Asakawa called on PM Modi and conveyed ADB's intention to provide $20-25 bn resources over five years to advance India's aspirations for fast, inclusive, and green growth

Press Trust of India New Delhi
PM Modi, Narendra Modi

Photo: Bloomberg

Asian Development Bank President Masatsugu Asakawa on Tuesday called on Prime Minister Narendra Modi and conveyed ADB's intention to provide USD 20-25 billion resources over five years to advance India's aspirations for fast, inclusive, and green growth.

In a release, the Manila-based multilateral lending agency said its President in his meeting with the Prime Minister discussed a range of issues, including ADB support to India's infrastructure and social development and climate actions.

ADB is now finalising the new five-year country partnership strategy (CPS) for India following a comprehensive stakeholder consultation process.

ADB will provide multifaceted support for India's key priorities, including the important infrastructure push under the PM's Gati Shakti (National Master Plan for multimodal connectivity) initiative, building future cities, mobilizing domestic resources, and strengthening basic services in disadvantaged districts," Asakawa said.

He also congratulated Modi on India's assumption of the Group of 20 (G20) presidency and reaffirmed ADB's support to the G20 agenda.

As a guest international organisation at the G20 meetings and Leaders' Summit, ADB is supporting the priorities of India's presidency across the finance and sherpa tracks, the release said.

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ADB started operations in India in 1986. At end-December 2022, it had committed USD 52.28 billion in sovereign lending in the country and USD 6.75 billion in nonsovereign lending and investment.

ADB's current India portfolio comprises 64 projects worth about $16 billion across the transport, urban, energy, human development, agriculture and natural resources, and finance sectors.

Asakawa also met with Finance Minister Nirmala Sitharaman and outlined ADB efforts to achieve annual regular lending of USD 4 billion from its sovereign operations in the next few years.

In a series of tweets, the Ministry of Finance said Sitharaman stressed on laying the foundation for India@100. In the light of this, the two leaders also discussed India-ADB Country Partnership Strategy 2023-2027, which is being finalised.

"FM suggested to Mr Asakawa that ADB may attune its priorities to GoI's vision for #Amritkaal, & initiatives like #EnergyTransition, #PMGatiShakti, #LogisticsPolicy, #IndustrialCorridors, #ClimateChange adaptation, Circular Economy, Health, #MissionKarmayogi & #SkillIndia," one of the tweets said.

Asakawa welcomed the finance minister's prioritisation of green growth in the Union Budget 2023-2024.

He informed Sitharaman that following the guidance of Prime Minister Modi, ADB has set up the secretariat for South Asia Sub-Regional Economic Co-operation (SASEC) in ADB's India office.

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

First Published: Feb 21 2023 | 8:41 PM IST

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