ADB approves $1 bln loan to aid India's urban reform agenda
This story was originally published at 14:12 IST on 28 July 2026
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NEW DELHI – The Asian Development Bank has approved $1 billion loan for the Centre's urban reform agenda and to maintain momentum in urban investments in India. The latest funding will also include technical assistance of $3 million to help the housing and urban affairs ministry implement the Urban Challenge Fund, the multilateral development bank said in a press release. The investment is aimed at transforming cities into "engines of economic growth, innovation, and liveability".
The funds will help in strengthening India's urban institutions, improve integrated economic and spatial planning, as well as boost the finances of urban local bodies. It will also expand access to commercial capital, including through municipal bonds and other market-based financing, while modernising urban governance through digital systems that improve transparency, efficiency, and evidence-based decision-making, the release said.
"ADB's value addition lies in helping translate the government's urban reforms into a growing pipeline of bankable, investment-ready projects that can crowd in commercial and private capital," the release said, quoting ADB Country Director for India Mio Oka. Indian cities create nearly 70% of new jobs and contribute about 63% of the country's GDP, which is projected to reach 75% by 2030. However, many cities continue to face constraints related to institutional capacity, financial resources, and access to market-based financing, which limits their ability to manage rapid urban growth and attract investment, the release said. End
US$1 = INR 95.84
Reported by Shweta
Edited by Akul Nishant Akhoury
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