Asian Development Bank has strengthened its partnership with India by committing more than $5 billion in financing during 2025 to support key sectors including workforce skilling, clean energy, urban infrastructure, transport, healthcare, and sustainable tourism.

According to an official statement, the total commitment comprised $4.238 billion in sovereign lending and an additional $1.06 billion allocated to private sector operations, reflecting the bank’s continued focus on supporting India’s long-term development priorities.

Nearly one-third of the 16 newly approved sovereign projects were directed towards human and social development initiatives, followed by investments in renewable energy and urban development projects, particularly in climate-vulnerable and economically lagging states.

Mio Oka said the institution remains committed to supporting India’s economic transformation and development agenda as the partnership between India and ADB approaches its 40th anniversary in 2026.

Among the major approvals in 2025 was an $846 million commitment for the PM SETU scheme aimed at upgrading Industrial Training Institutes (ITIs) and strengthening workforce skills across the country. The initiative is expected to improve employability and support India’s growing industrial and manufacturing sectors.

ADB also approved $650 million for the PM Surya Ghar Muft Bijli Yojana to accelerate rooftop solar adoption and support India’s clean energy transition goals.

Additional investments were directed towards urban transport systems, healthcare infrastructure, rural electricity distribution, climate resilience projects, and ecotourism development initiatives.

The funding aligns with India’s broader push towards sustainable infrastructure, renewable energy expansion, and inclusive economic growth. Experts believe multilateral financing will play a critical role in helping India scale climate-focused infrastructure and achieve long-term net-zero and energy transition objectives.