the Asian Development Bank (ADB) has announced a landmark investment of $10 billion over the next five years to upgrade and modernize urban infrastructure across the country. The initiative, unveiled by ADB President Masato Kanda after a meeting with Prime Minister Narendra Modi, aims to support India’s rapid urbanization and the government’s vision of “Viksit Bharat 2047”
The $10 billion investment plan will focus on a wide range of urban infrastructure projects, including:
Metro Rail Extensions: Expanding metro networks in major cities to improve public transport, reduce congestion, and lower emissions.
Regional Rapid Transit System (RRTS) Corridors: Developing new rapid transit corridors to connect urban growth centers and enhance regional connectivity.
Municipal Infrastructure: Upgrading water supply, sanitation, housing, and solid waste management services in cities and towns.
Modernization of Urban Services: Implementing smart solutions for urban management, creative city redevelopment, and sustainable growth.
ADB will leverage a mix of sovereign loans, private sector financing, and third-party capital to maximize the impact of its investment. The Urban Challenge Fund (UCF), backed by ADB, will play a key role in attracting private investment into city infrastructure.
Alongside financial support, ADB is providing $3 million in technical assistance to help design viable urban projects and strengthen the capacity of state and local urban bodies. Foundational studies are already underway in 100 cities, focusing on growth hubs, redevelopment, and water and sanitation upgrades.
ADB’s urban portfolio in India currently includes 27 active loans worth $5.15 billion, supporting more than 110 cities across 22 states. Over the past decade, ADB has committed $4 billion to metro and RRTS projects in eight cities, including Delhi, Mumbai, Chennai, Bengaluru, Nagpur, and Meerut.
With projections indicating that over 40% of India’s population will live in urban areas by 2030, the ADB’s investment is timely and critical. President Masato Kanda emphasized, “Cities are engines of growth. ADB will mobilize capital, accelerate delivery, and scale solutions that keep India’s urban economy moving and people thriving on the road to Viksit Bharat by 2047"
Prime Minister Modi welcomed the partnership, noting India’s rapid transformation in the last decade and the shared ambition to empower millions more through sustainable urban development.
ADB’s ongoing collaboration with India also includes skills development, renewable energy partnerships, and support for marginalized communities, including women and people with disabilities.