ADB Unveils $10 Billion Plan to Transform Urban India Over Five Years

In a major boost to India’s urban development ambitions, Asian Development Bank (ADB) President Masato Kanda has announced a $10 billion investment plan aimed at transforming urban infrastructure across the country over the next five years. The initiative, which blends sovereign loans, private sector financing, and third-party capital, will support metro network expansions, new regional rapid transit system (RRTS) corridors, and improved urban services.

Speaking after his meeting with Prime Minister Narendra Modi, Kanda emphasised the central role of cities in driving economic growth. “Cities are engines of growth,” he said, underscoring ADB’s commitment to fostering urban transformation that is inclusive, sustainable, and future-ready.

A key pillar of the initiative is India’s flagship Urban Challenge Fund (UCF), which ADB is actively supporting to mobilise private investment in urban infrastructure. Groundwork for the UCF is being laid through completed studies in 100 cities, focusing on growth hubs, creative city redevelopment, and essential upgrades in water and sanitation.

To further streamline the process, ADB has earmarked $3 million in technical assistance for designing bankable urban projects and strengthening the institutional capacity of states and urban local bodies.

During his visit, Kanda also held discussions with Finance Minister Nirmala Sitharaman, Housing and Urban Affairs Minister Manohar Lal, and other senior officials. Talks focused on expanding metro networks through transit-oriented development (TOD), promoting rural prosperity, scaling up rooftop solar installations, and operationalising the UCF.

ADB has already collaborated with more than 110 cities across 22 states on projects related to water supply, sanitation, housing, and waste management. Its current urban development portfolio in India includes 27 loans amounting to $5.15 billion.

Over the past decade, ADB has invested $4 billion in metro and RRTS projects, covering over 300 kilometers across eight cities—among them the Delhi–Meerut RRTS, Mumbai Metro, Nagpur Metro, Chennai Metro, and Bengaluru Metro. These investments have helped reduce congestion, lower emissions, and improve accessibility for vulnerable groups, including people with disabilities.

Additionally, ADB will support India’s manufacturing ambitions through its National Industrial Training Institute Upgradation Program, aiming to enhance skills development, spur private sector growth, and generate quality employment opportunities for India’s youth.

With urban populations expected to exceed 40% by 2030, this ambitious partnership between ADB and India marks a significant step toward building resilient, inclusive, and world-class cities.