ADB Unveils $10B Urban Infrastructure Plan to Transform Indian Cities by 2030

The Asian Development Bank (ADB) has unveiled a groundbreaking five-year initiative set to direct up to $10 billion, including third-party capital, toward transforming India’s urban landscape. Aimed at catalyzing growth, enhancing mobility, and improving the quality of life in rapidly growing cities, the program supports India’s long-term development vision—Viksit Bharat @ 2047.

Announced by ADB President Masato Kanda during his official visit to India, the initiative is a strategic response to India’s rapid urbanization and growing demand for smart, inclusive, and climate-resilient infrastructure.

“Cities are engines of growth,” said Mr. Kanda after meeting with Indian Prime Minister Narendra Modi. “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 @ 2047.”

$10 Billion for Metro Expansion, RRTS, and Urban Services

The new program integrates sovereign lending, private sector investment, and third-party capital to drive India’s urban transformation. It builds upon the ongoing support of India’s Urban Challenge Fund (UCF), designed to attract private capital into municipal infrastructure.

ADB’s initiative will fund critical infrastructure across a range of areas:

• Metro system expansions in major cities

• New Regional Rapid Transit System (RRTS) corridors

• Urban water, sanitation, and solid waste projects

• Affordable housing and creative city redevelopment

• Smart city and growth hub development

The bank has committed an initial $3 million in technical assistance to help cities prepare bankable projects, strengthen urban governance, and develop resilient planning systems.

Urbanization Challenge: India’s Cities to Host 40% of Population by 2030

India’s urban population is projected to exceed 40% by 2030, presenting enormous opportunities and challenges. The ADB has already partnered with over 110 cities in 22 states, investing in essential services such as clean water, sewage management, solid waste handling, and affordable housing.

ADB’s active urban portfolio in India currently consists of 27 loans worth $5.15 billion, and its urban transport investments over the past decade have totaled $4 billion, impacting 300 kilometers of urban transit in eight major cities.

Key urban transport projects supported by ADB include:

• Delhi–Meerut RRTS (India’s first RRTS)

• Mumbai Metro

• Nagpur Metro

• Chennai Metro

• Bengaluru Metro

These projects not only reduce traffic congestion and emissions but also ensure greater inclusivity, particularly for women and persons with disabilities.

Workforce Development: Skills for the Future

Beyond infrastructure, ADB’s initiative includes investment in skills development to support the manufacturing sector and urban workforce. The National Industrial Training Institute Upgradation Program will be supported to deliver technical education and vocational training that aligns with the evolving needs of the urban economy.

This is part of a broader strategy to generate high-quality jobs, especially for young people, and support the shift toward a technology-driven, green economy.

High-Level Engagements to Drive Collaboration

During his visit, Mr. Kanda held strategic meetings with top Indian officials:

• With Finance Minister Nirmala Sitharaman, he discussed scaling up metro rail systems, promoting transit-oriented development (TOD), and operationalizing the UCF to unlock greater private investment.

• With Housing and Urban Affairs Minister Manohar Lal, discussions focused on replicating ADB-backed urban transport successes, attracting institutional capital, and enhancing TOD in new corridors.

Mr. Kanda also visited the Delhi–Meerut RRTS, engaging with women beneficiaries of project-linked livelihood and skills programs, and toured ReNew, a leading renewable energy firm in Gurugram, to strengthen partnerships in green energy development.

Private Sector as a Growth Catalyst

At a roundtable with top business leaders from infrastructure, agriculture, finance, and social sectors, Mr. Kanda emphasized the pivotal role of India’s private sector in providing the “scale and dynamism” needed to drive India’s urban and economic transformation.

Under ADB’s Country Partnership Strategy for India (2023–2027), the bank is prepared to deliver over $5 billion annually, including $1 billion in nonsovereign operations that will help leverage private capital into key growth sectors.

ADB–India Partnership: Nearly 40 Years of Impact

ADB’s relationship with India dates back to 1986. As of April 2025, the bank has committed:

• $59.5 billion in sovereign lending

• $9.1 billion in nonsovereign investments

• An active portfolio of 81 sovereign loans worth $16.5 billion

This partnership reflects ADB’s commitment to inclusive and sustainable development in Asia’s fastest-growing major economy.

As India moves toward its Viksit Bharat @ 2047 vision—a prosperous, equitable, and developed nation—ADB’s renewed focus on urban transformation, skills, and climate-aligned infrastructure signals a powerful convergence of purpose.

“We are proud to partner with India on this ambitious journey,” said Mr. Kanda. “Together, we can shape cities that not only grow, but uplift every citizen.”