Asian Development Bank Expands support for renewable energy, green hydrogen, E-mobility and supply chain finance.
NEW DELHI — India continues to be the largest market for the Asian Development Bank’s (ADB) private sector operations, with the multilateral lender expecting to provide approximately USD 1 billion in direct financing in 2026 to support projects aligned with the country’s development priorities.
The planned financing reflects ADB’s continued commitment to supporting India’s economic growth through investments in clean energy, sustainable infrastructure, financial inclusion and supply chain resilience.
According to ADB Vice-President (Market Solutions) Bhargav Dasgupta, the institution intends to maintain its momentum in private sector financing after a strong performance in 2025.
RELEVANT SUSTAINABLE GOALS
India Remains the Largest Market for ADB Private Sector Operations
Speaking to PTI, Dasgupta said India continues to occupy a central position within ADB’s private sector portfolio.
“Last year, we did more than USD 4 billion for sovereign and more than USD 1 billion for the private sector from our own capital,” he said.
Beyond direct financing, ADB also mobilised additional funding from external sources to support private sector investments.
“Besides, we mobilised an equal amount for them from other sources. In effect, the flow was USD 2 billion to private sectors through the ADB in 2025,” Dasgupta said.
The figures underscore the scale of India’s importance within ADB’s broader regional development strategy and highlight growing investor confidence in the country’s expanding clean energy and infrastructure sectors.
ADB Plans to Maintain Financing Momentum in 2026
Looking ahead, ADB expects to sustain a similar pace of investment during 2026.
“We will maintain the tempo on the private sector side,” Dasgupta said when discussing the institution’s plans for the year.
The continued financing reflects the lender’s long-term strategy of supporting sectors that contribute to economic development while advancing sustainability and energy transition objectives.
Renewable Energy and Green Technologies Lead Investment Priorities
ADB identified several sectors that will remain at the forefront of its private sector financing programme in India.
Among the priority areas are renewable and clean energy projects, green hydrogen development, electric mobility initiatives and green data centres.
These sectors are increasingly viewed as critical components of India’s energy transition and industrial competitiveness agenda.
As India seeks to strengthen energy security, reduce emissions and expand sustainable economic growth, investments in emerging green technologies are attracting growing interest from both public and private capital providers.
Urban Infrastructure, Sustainable Agriculture and Financial Inclusion Remain Key Focus Areas
In addition to clean energy investments, ADB continues to support broader development sectors that play a vital role in India’s economic transformation.
The institution’s focus areas include urban infrastructure development, sustainable agriculture and financial inclusion initiatives designed to expand economic opportunities across communities and industries.
According to Dasgupta, these priorities are closely aligned with national development objectives.
“This is in complete alignment with what the Government of India wants because our country partnership agenda is co-created with the government,” he said.
West Asia Crisis Drives Surge in Trade and Supply Chain Financing
ADB has also reported a significant increase in demand for trade and supply chain financing during 2026.
Dasgupta said financing activity in this segment increased by 40 per cent during the first four months of the year, largely due to disruptions linked to the West Asia crisis.
The financing programmes are helping support imports of essential commodities including fertiliser, energy and food.
Trade and supply chain financing, he noted, remains critical for ensuring stable access to these resources for many countries.
ADB and Standard Chartered Strengthen Supply Chain Finance in India
As part of its efforts to strengthen trade financing, ADB signed agreements with Standard Chartered Bank last month to enhance supply chain finance capabilities in India.
The partnership includes risk-sharing arrangements covering both US dollar and Indian rupee transactions.
The agreements comprise a risk participation arrangement structured through Gujarat International Finance Tec-City (GIFT City) to support US dollar-denominated transactions, alongside a partial guarantee facility agreement designed to support onshore rupee transactions.
A major feature of the collaboration is its focus on emerging and underserved segments of supply chain finance, particularly distributor financing.
The initiative marks ADB’s first engagement in this area within the Indian market.
Growing Capital Support for India’s Development Goals
The continued expansion of ADB financing highlights the growing role of multilateral institutions in supporting India’s development ambitions.
From renewable energy and green hydrogen to urban infrastructure and financial inclusion, the lender’s investment strategy reflects the increasing convergence between economic growth, energy security and sustainability objectives.
With plans to provide approximately USD 1 billion in direct private sector financing during 2026 while maintaining strong support for trade and supply chain resilience, India is expected to remain a cornerstone of ADB’s regional investment portfolio.
As the country accelerates its clean energy transition and infrastructure development agenda, partnerships between international financial institutions and private enterprises are likely to play an increasingly important role in driving long-term growth and competitiveness.
