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India has signed a USD 500 million loan agreement with the ADB to support sustainable infrastructure projects.

Banking & Finance | Dated: 28 Dec 2024

In December 2024, the Government of India (GoI) and the Asian Development Bank (ADB) signed a USD 500 million loan to support green and sustainable infrastructure projects that align with India's climate commitments.

🎯 Key Highlights:

  • - The loan will be provided to the India Infrastructure Finance Company Limited (IIFCL) with a sovereign guarantee (a guarantee by the government).
  • - The loan agreement is part of the Financing Environmentally Sustainable Growth in Infrastructure Project. It was signed by Juhi Mukherjee, Joint Secretary, Department of Economic Affairs (DEA), Ministry of Finance (MoF), and Mio Oka, ADB's Country Director for India.

💡 Other Important Facts:

  • (i) The financing will be used to offer loans to EWS, low-income groups, and women borrowers. At least 15% of the total funds will go to first-time borrowers.
  • (ii) By focusing on low-income households and sustainable construction, ADB aims to tackle India's serious housing shortage while promoting environmentally friendly housing that enhances climate resilience for homeowners.
  • (iii) According to the Reserve Bank of India (RBI), 95% of India's housing deficit is due to a shortage of 45 million homes for economically weaker communities and 50 million homes for low-income groups.

📚 Test Your Knowledge:

India recently signed a loan agreement of how much amount with the ADB to support sustainable infrastructure projects?

Correct Answer: USD 500 million

🚀 Quick Recap:

About ADB

  • President : Masatsugu Asakawa
  • Headquarters: Mandaluyong, Philippines