ADB to Provide up to $9 Billion Loan to India Over 3 Years

New Delhi: Committing to support infrastructure development in India, Asian Development Bank on Wednesday said it will provide up to $9 billion loan to the country over the next three years.

"ADB's operations for India will maintain high level of lending, amounting to a total of $7-9 billion over the next three years," ADB president Takehiko Nakao said in Delhi.

Besides, the multilateral funding agency will provide around $30 million for technical assistance grants, especially for building institutions and capacity at the state as well as the local levels, he said.

Mr Nakao, who is on a two-day official visit, met Prime Minister Narendra Modi and Finance Minister Arun Jaitley and discussed macroeconomic situation and ADB's funding programme to boost infrastructure sector.

During the meeting, he emphasised that ADB will help India accelerate infrastructure development, boost manufacturing, improve skills of the young people to enhance their employability, expand trade through regional cooperation, and promote private sector activities.

Stressing that India has a potential to grow at 10 per cent, Mr Nakao said its economy was expected to expand at 5.5 per cent in the current fiscal year. For the next fiscal year (2015-16), it has projected a growth rate of 6.3 per cent.

"To get back to a high growth path of 8 to 9 per cent, it is also crucial to implement investment-friendly reforms being initiated by the government," he said.

Easing the regulatory burden on industry by eliminating red tape and promoting inter-agency coordination, enabling single window clearance mechanisms, and reviewing land acquisition procedures should be part of the national strategy to attract local and foreign investors, he said.

"Together with efforts to build world class infrastructure and skills, these steps would create the job opportunities needed to absorb India's youthful and growing labor force and ensure that growth is inclusive," he added.