ADB approves $1 billion loan to support sustainable growth and resilience of India’s cities

NEW DELHI— The Asian Development Bank (ADB) has approved a $1 billion loan to support the Government of India’s urban reform agenda and maintain momentum in urban investments and reforms aimed at transforming cities into engines of economic growth, innovation, and livability.The Urban Transformation and Investment Program supports the implementation of India’s flagship Urban Challenge Fund (UCF) and related reforms to strengthen urban institutions, improve integrated economic and spatial planning, and help urban local bodies strengthen their finances. It will promote resilient urban regeneration that protects women and girls, including transit-oriented development and improved public-space management. It will also expand access to commercial capital, including through municipal bonds and other market-based financing, while modernizing urban governance through digital systems that improve transparency, efficiency, and evidence-based decision-making.ADB has been a long-standing partner of the Ministry of Housing and Urban Affairs (MoHUA). Since 2024, ADB has contributed to analytical work on cities as growth hubs, creative redevelopment of cities, and water supply and sanitation in Indian cities, which helped lay the groundwork for the UCF. ADB’s support also includes $3 million in technical assistance to help MoHUA implement the UCF.“India’s cities will be central to achieving the Viksit Bharat vision of a fully developed nation by 2047. ADB’s value addition lies in helping translate the government’s urban reforms into a growing pipeline of bankable, investment-ready projects that can crowd in commercial and private capital,” said ADB Country Director for India Mio Oka. “By combining policy support, technical assistance, and financing, the program will strengthen urban institutions, expand access to market-based financing, and improve infrastructure and service delivery, enabling cities to drive India’s next phase of growth.”India’s economic transformation is increasingly driven by urbanization. Cities generate nearly 70% of new jobs and contribute about 63% of the country’s gross domestic product, a share projected to reach 75% by 2030. However, many cities continue to face constraints related to institutional capacity, financial resources, and access to market-based financing, limiting their ability to manage rapid urban growth and attract investment.ADB is a leading multilateral development bank supporting sustainable, inclusive, and resilient growth across Asia and the Pacific. Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet. Founded in 1966, ADB is owned by 69 members—50 from the region.