India Tops ADB's Private Sector Portfolio, USD 1 Billion New Investment In Pipeline

New Delhi, Jun 22 (KNN) India remains the largest market for the Asian Development Bank's (ADB) private sector operations, with the multilateral lender planning to extend around USD 1 billion in direct financing this year to support projects aligned with the country's development priorities.
 
ADB Vice-President (Market Solutions) Bhargav Dasgupta said the institution intends to maintain the momentum in private sector financing after providing more than USD 1 billion from its own capital to the segment in 2025.
 
"Last year, we did more than USD 4 billion for sovereign operations and more than USD 1 billion for the private sector from our own capital. We also mobilised an equal amount from other sources, taking the effective flow to the private sector to USD 2 billion through ADB in 2025," he told PTI.
 
Focus on Clean Energy and Sustainable Growth
 
Dasgupta said the bank's private sector investments will continue to focus on areas critical to India's transition towards sustainable growth, including renewable and clean energy, green hydrogen, electric mobility and green data centres. Other priority sectors include urban infrastructure development, sustainable agriculture and financial inclusion.
 
He noted that ADB's interventions are aligned with India's development agenda, with the country partnership strategy being jointly designed with the Government of India.
 
Trade Finance Activity Rises Amid West Asia Disruptions
 
On trade and supply chain financing, Dasgupta said ADB has witnessed a 40 percent increase in activity during the first four months of 2026, driven largely by disruptions arising from the West Asia crisis.
 
He said the financing has been instrumental in supporting imports of essential commodities such as fertilisers, energy products and food supplies, which remain critical for many economies.
 
ADB, Standard Chartered Partner To Strengthen Supply Chain Finance
 
Last month, ADB and Standard Chartered Bank entered into agreements aimed at strengthening supply chain finance in India through risk-sharing arrangements covering both US dollar and rupee-denominated transactions.
 
The partnership includes a risk participation arrangement through Gujarat International Finance Tec-City (GIFT City) to facilitate US dollar transactions, along with a partial guarantee facility agreement for domestic rupee transactions.
 
Expanding Credit Access for Underserved Supply Chains
 
A key aspect of the collaboration is its focus on expanding financing access for emerging and underserved segments of the supply chain ecosystem, particularly distributor financing.
 
ADB said the initiative marks its first engagement in distributor financing within the Indian market and is expected to improve credit access and strengthen supply chain resilience.
 
(KNN Bureau)