The Asian Development Bank on Wednesday said it will increase its annual lending to India to a maximum of $4 billion between 2018 and 2022 to help fasten inclusive economic transformation towards upper middle income status.

“ADB’s programme in India will focus on three main pillars of activity during the 5-year period — boosting economic competitiveness to create more and well-paid jobs, improved access to infrastructure and services, and addressing climate change and improving climate resilience,” it said in a release.

The proposal was endorsed at new ADB Country Partnership Strategy for 2018- 2022.

The new lending programme, which includes private sector operations, is much higher than the average $2.65 billion a year in loans extended during 2012 and 2016.

The lending will be complemented by technical assistance to help undertake strategic studies, build capacities, and prepare projects, increasing from the current average of $6.6 million in 2013-2016, it said, adding that the ADB will also explore co-financing opportunities, including climate funds for relevant projects.

Major challenges

The agency, however, noted that infrastructure continues to be a major bottleneck, with an estimated investment shortfall of $230 billion a year.

Other critical challenges include how to close gap between advanced and lagging regions where most of the poor are concentrated, environmental degradation exacerbated by the impacts of climate change, and building capacity within the country’s institutions, it added.

Related Topics
comment COMMENT NOW