ADB to extend $20 billion loan to India over 5 years
Multi-lateral funding agency Asian Development Bank (ADB) announced that it increase annual funding to India to up to $4 billion from existing $2.7 billion from next year to accelerate inclusive economic transformation.
As part of ADB’s Country Partnership Strategy 2018-22, the multi-lateral funding agency will provide loans up to $4 billion on annual basis including non-sovereign or private debt during 2018-22. Cumulatively, India which is the largest recipient of ADB will get about $20 billion over a period of 5 years.
Under this strategy, ADB’s annual sovereign funding to India will increase from $2 billion to $3 billion while private sector funding will be doubled to $1 billion. The other priority pillars of strategy also include increasing annual funding to low income states and climate change.
ADB’s India specific programme will focus on boosting economic competitiveness to create more and well-paid jobs, improve access to infrastructure and services and addressing climate change and improving climate resilience over these 5 years.
Asian Development Bank (ADB)
ADB is regional development bank which aims to promote social and economic development in Asia. It was established in 1966. It is headquartered in Manila, Philippines. Now it has 67 members, of which 48 are from within Asia and the Pacific and 19 outside.
The ADB has been modelled closely on World Bank. It has similar weighted voting system where votes are distributed in proportion with members’ capital subscriptions. As of 2014, Japan was largest shareholder (capital subscription) of ADB having 15.7% shares followed by US (15.6%), China (6.5%), India (6.4%), and Australia (5.8%).