The Asian Development Bank (ADB) and the central government have signed a $ 250 million loan to support the National Industrial Corridor Development Program (NICDP) to boost the country’s manufacturing competitiveness and generate high level employment.

The agreement was signed on November 25 by Rajat Kumar Mishra, Additional Secretary, Department of Economic Affairs in the Finance Ministry. This agreement was for first of two subprograms of the Industrial Corridor Development Program, each of $ 250 million. Takeo Konishi, Country Director of ADB’s India Resident Mission signed for ADB.

Mishra said that ADB financing supports India’s NICDP that aims to develop world-class industrial nodes buttressed by efficient urban agglomerations and multimodal connectivity, including international gateways like ports and airports and inclusive, climate-resilient, and sustainable infrastructure.

“The program complements the government’s ambitious reform agenda to establish institutional framework and build capacity to create an enabling environment for integrated development of industrial corridors, streamline business processes, and promote private sector investment in corridor areas,” said Konishi in a statement. “Development of industrial corridors will strengthen national supply chains and boost linkages with global value chains.”

India has initiated significant reforms to increase the manufacturing sector’s productivity and competitiveness, like streamlined business processes to facilitate private investment, reduced corporate taxes, consolidated labour codes, increased public investment in infrastructure, and approved the creation of a new development financial institution.

As part of NICDP, it is also developing guidelines for green corridor frameworks and climate-resilient infrastructure as well as focusing on enhancing skills for the participation of female labour.