The Asian Development Bank (ADB) will invest up to US$10 billion over five years to transform urban infrastructure across India. ADB President Masato Kanda announced the plan after meeting Prime Minister Narendra Modi, targeting metro extensions, regional rapid transit corridors, and urban services. The initiative combines government loans, private financing, and third-party capital to support India’s growing cities.
India’s urban population will reach more than 40% out of current 1.4 billion people by 2030, putting pressure on existing infrastructure. ADB has already worked with over 110 cities across 22 states on water, sanitation, housing, and waste projects. The bank’s current urban portfolio includes 27 loans worth $5.15 billion, plus $4 billion for metro projects covering 300 kilometres in eight cities.
The plan centers on India’s Urban Challenge Fund (UCF), which ADB supports to attract private investment. ADB is providing $3 million in technical help to design projects and strengthen local government capacity. Studies on growth hubs, city redevelopment, and water upgrades in 100 cities will guide implementation.
During his visit, Kanda met Finance Minister Nirmala Sitharaman and Housing Minister Manohar Lal to discuss expanding metro networks and transit-oriented development. “Cities are engines of growth,” Kanda said. “ADB will mobilize capital, accelerate delivery, and scale solutions that keep India’s urban economy moving.”
The plan fits with ADB’s broader work in India, where the bank provides more than $5 billion in financing each year through 2027. As India’s cities grow rapidly, the country needs better infrastructure to keep up with the millions of people moving to urban areas.
