India has secured two loans totaling ₹73.2 billion ($850 million) from the Asian Development Bank (ADB) to advance its green infrastructure and manufacturing sectors, with a focus on sustainability and efficiency. The funding includes a $500 million loan extended to the India Infrastructure Finance Company Limited (IIFCL) under a sovereign guarantee, ensuring government backing in case of default. This loan will bolster IIFCL’s ability to integrate green practices into infrastructure projects, targeting critical areas such as connectivity, energy transitions, and under-resourced sectors like urban development, education, and healthcare. By supporting sustainable infrastructure, the loan aims to reduce environmental impacts, enhance resource efficiency, and contribute to India’s climate goals.
The second loan, valued at $350 million, is aligned with ADB’s Strengthening Multimodal and Integrated Logistics Ecosystem (SMILE) programme. This funding seeks to modernize and enhance India’s manufacturing sector and supply chain logistics while addressing climate concerns. Key objectives include improving multimodal logistics infrastructure, standardizing warehouse operations, streamlining trade logistics, and promoting low-emission technologies. These reforms are expected to reduce operational costs, increase supply chain efficiency, foster economic growth, generate employment opportunities, and enhance gender inclusion within the workforce.
Together, these loans signify the strong partnership between ADB and the Indian government in driving sustainable development, promoting innovation, and supporting the transition to a low-carbon economy. By addressing critical gaps in infrastructure and logistics, the initiatives aim to position India as a global leader in green and resilient development.
