In order to meet funding requirement for infrastructure development, the government wants to increase the Asian Development Bank's (ADB) lending commitment to India, the world's fastest-growing major economy. Economic Affairs Secretary Subhash Chandra Garg would meet ADB president Takehiko Nakao where he would push for increasing the ADB's lending to India. Also realignment of the ADB's lending priorities in line with 'Strategy 2030' of the multilateral lender would be discussed.
India will support the ADB's plan to offer more resources for poverty mitigation and projects addressing climate change. ADB commits about $3 billion investment in a year, including that from its private sector lending arm, for India. Besides, Garg said that the $3 billion is a commitment that ADB makes and disbursement takes place subsequently based on project implementation. Stating that the ADB focuses on transport and energy sector in India, he said that the ADB is now planning to make a little more direct focus on poverty reduction and climate change.
The Secretary further said that ADB still continue to say that infrastructure is their main focus even going forward. He also said that they continue to feel ADB has lot of experience and advantage in financing infra development in the country. But, he said that going forward if they change somewhat more towards social sector, poverty reduction that realignment is fine. He added that Manila-based ADB has so far committed 209 sovereign loans totalling $35.9 billion to India.