ADB To Maintain $1 Billion Annual Private Sector Funding In India
India will continue to be the largest market for the Asian Development Bank's (ADB) private sector operations, with the multilateral lender planning to provide around USD 1 billion in direct financing this year to support projects aligned with the country's development priorities.As per media reports, Bhargav Dasgupta, Vice-President (Market Solutions) at the Asian Development Bank, said the institution remains committed to maintaining the pace of its private sector investments in India after a strong performance in 2025.
"Last year, we did more than USD 4 billion for sovereign and more than USD 1 billion for the private sector from our own capital," Dasgupta said.
In addition to direct financing, ADB mobilised a similar amount from external sources, effectively channelling around USD 2 billion into India's private sector through its platform during 2025.
Asked about the outlook for the current year, Dasgupta said the lender intends to sustain the momentum.
"We will maintain the tempo on the private sector side," he said.
The ADB's private sector financing strategy in India will continue to focus on sectors critical to the country's energy transition and sustainability goals. These include renewable and clean energy projects, green hydrogen production, electric mobility infrastructure and environmentally sustainable data centres.
Beyond green investments, the Manila-headquartered institution is also prioritising urban infrastructure, sustainable agriculture and initiatives aimed at enhancing financial inclusion.
According to Dasgupta, these investment priorities are closely aligned with the Indian government's development agenda.
"This is in complete alignment with what the Government of India wants because our country partnership agenda is co-created with the government," he said.
The ADB executive also highlighted a sharp rise in demand for trade and supply chain financing amid geopolitical uncertainty in West Asia. He said trade and supply chain financing activities had increased by 40 per cent during the first four months of 2026.
The financing programmes are helping countries secure essential imports, including fertilisers, energy supplies and food products, at a time of heightened disruption to global trade routes and supply chains.
Last month, the Asian Development Bank entered into agreements with Standard Chartered to strengthen supply chain finance in India through risk-sharing arrangements covering both US dollar and rupee-denominated transactions.
The partnership includes a risk participation arrangement structured through GIFT City to support US dollar transactions, alongside a partial guarantee facility designed to facilitate onshore rupee financing.
A notable feature of the collaboration is its emphasis on emerging and underserved areas of supply chain finance, particularly distributor financing. The initiative also marks ADB's first engagement in distributor-focused supply chain financing within the Indian market.
The continued flow of private capital from ADB is expected to support India's broader ambitions around sustainable development, infrastructure modernisation and industrial growth, while helping businesses access long-term financing in strategically important sectors.
Pages:
[1]