In order to support India to accelerate inclusive economic transformation toward upper-middle-income status, the Asian Development Bank (ADB) said that it is planning to raise annual lending up to $4 billion per year to the country between 2018 and 2022. The proposal was endorsed at new ADB Country Partnership Strategy (CPS) for these five years. Besides, it noted that 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.
Multi-lateral funding agency has stated that during the 5-year period, the new lending programme will focus on three pillars of activities, such as boosting economic competitiveness to create more and well-paid jobs, improved access to infrastructure and services, and addressing climate change and improving climate resilience. The report also said that financing will also go for public sector management, agriculture, natural resources and rural development as well as skills development and urban health. It also mentioned that the new lending will be complemented by technical assistance to undertake strategic studies, build capacities and prepare projects. In addition, ADB will also explore co-financing opportunities, including climate funds for relevant projects.
As part of the enhanced lending under CPS, ADB said that it will continue to prioritise private sector development and support government in reviving private financing of infrastructure projects, including via public-private partnerships. In private sector, it will support transport, power, urban infrastructure (including sewerage and solid waste management), affordable housing, manufacturing, health and education among others.