The Asian Development Bank has committed more than $5 billion in financing for India in 2025, with major investments planned across clean energy, transport, urban infrastructure, skills development and healthcare sectors. The funding includes both sovereign lending and private sector investments aimed at supporting India’s long-term infrastructure and climate goals.

According to details released by the multilateral development bank, the total commitment includes $4.238 billion in sovereign lending and $1.06 billion for private sector operations. ADB also mobilised an additional $1.1 billion through co-financing and partnerships.

A substantial amount of funding has been allocated to renewable energy and urban development initiatives, given that India is making rapid progress towards clean energy initiatives and is ready to face the challenges associated with rapid urban population growth. Close to one-third of the sovereign projects that have been sanctioned in the recent past are aimed at human and social development.

One of the largest allocations announced this year is $650 million for the PM Surya Ghar Muft Bijli Yojana, the Centre’s flagship rooftop solar programme aimed at expanding residential solar adoption across the country. The move comes as India continues to push for higher renewable energy capacity and lower dependence on fossil fuels.

ADB has also approved $846 million for the PM Skilling Scheme for ITI Upgradation (PM SETU), which aims to modernise Industrial Training Institutes and improve employability through workforce training and technical education upgrades.

Urban infrastructure and transport projects are the third important areas of investments. About $775 million have already been allocated for urban infrastructure projects in the states of Assam, Kerala, Sikkim, and West Bengal to enhance their urban service systems in terms of water and sanitation facilities. Additionally, $709 million have been approved for RRTS expansion from Delhi to Meerut, and for metro rail projects in Chennai and Indore.

Other capital expenditure includes $460 million for rural electrification initiatives in Maharashtra and around $399 million for healthcare and medical education projects in Assam. In addition, the bank has made a pledge to invest in excess of $200 million for ecotourism development initiatives in Meghalaya and Uttarakhand, along with lesser amounts for industrial infrastructure in Gujarat and Tripura.

The funding program indicates the priority accorded by ADB in strengthening the building infrastructure and urbanization through climate change in India. The Indian cities have faced increasing pressures owing to urbanization, energy consumption, traffic pollution, and other problems caused by climate change such as heatwaves and floods.

ADB president Masato Kanda has made an announcement regarding a more comprehensive plan for transforming the Indian urban sector worth up to ten billion dollars within the next five years.

The bank is also supporting policy and planning frameworks linked to urban redevelopment, water supply and sanitation systems, and “cities as growth hubs” initiatives under India’s Urban Challenge Fund. These frameworks are expected to help attract larger private investments into city infrastructure projects in the coming years.

Mio Oka, Country Director for India at ADB, said the organisation remains focused on supporting India’s development priorities as the partnership between India and ADB approaches 40 years in 2026. According to ADB, the institution has committed more than $63 billion to India’s public sector projects and over $10 billion to private sector operations since it began operations in the country in 1986.