New Delhi | December 4, 2025:
The Government of India and the Asian Development Bank (ADB) signed three major loan agreements worth over $800 million, aimed at transforming urban mobility and rural infrastructure in Maharashtra, Madhya Pradesh, and Gujarat. The agreements were formally signed by Saurabh Singh, Deputy Secretary in the Ministry of Finance, and Mio Oka, ADB Country Director for India.
The package includes $300 million for Maharashtra’s green urban mobility, supporting electric bus fleets and smart traffic systems in Mumbai; $250 million for Gujarat’s rural road connectivity, enhancing logistics and market access; and $250 million to improve irrigation networks in drought-stricken Madhya Pradesh, expected to increase agricultural productivity by 20%.
Finance Minister Nirmala Sitharaman, who approved the agreements, stated that the initiative aligns with India’s broader $1 trillion climate finance commitment by 2030, accelerating low-carbon transitions and supporting sustainable development. The projects are estimated to create 50,000 jobs and benefit nearly 10 million rural residents, particularly in underserved regions.
Gujarat Chief Minister Bhupendra Patel hosted part of the signing discussions, emphasizing the importance of resilient infrastructure amid rising climate risks. ADB’s involvement builds on its long-standing partnership with India, including the previous $300 million Gujarat water management project.
However, critics raised concerns about ADB’s 1.5% interest rate, arguing it may add pressure at a time when domestic borrowing costs are rising. Despite global economic uncertainty—UNCTAD predicts only 2.6% global growth in 2025—officials believe the investment will bolster India’s economic stability, countering volatility driven by geopolitical tensions.
Key Facts:
Maharashtra urban mobility: $300M
Gujarat rural roads: $250M
Madhya Pradesh irrigation: $250M
Jobs created: 50,000
Beneficiaries: 10 million people
