The Asian Development Bank (ADB) expects to provide about $1 billion in direct financing to India's private sector in 2026, maintaining the country as its largest market for private sector operations. The support aligns with India's development priorities, according to PTI.
Record Funding in 2025
In 2025, ADB channeled over $2 billion to India's private sector through a combination of direct financing and mobilised funds. ADB Vice-President (Market Solutions) Bhargav Dasgupta told PTI: "Last year, we did more than $4 billion for sovereign and more than $1 billion for the private sector from our own capital." Additionally, the bank mobilised an equal amount from other sources, bringing the total flow to $2 billion.
2026 Plans and Sector Focus
Dasgupta stated, "We will maintain the tempo on the private sector side" in 2026. ADB will continue financing renewable and clean energy, green hydrogen, e-mobility, and green data centres. The lender is also focusing on urban infrastructure development, sustainable agriculture, and financial inclusion. "This is in complete alignment with what the Government of India wants because our country partnership agenda is co-created with the government," Dasgupta added.
Trade and Supply Chain Finance Surge
Trade and supply chain financing activity has risen sharply, with a 40% jump recorded in the first four months of 2026 due to the West Asia crisis. These facilities support the import of fertiliser, energy, and food, which are critical for many countries.
Partnership with Standard Chartered
In March 2026, ADB and Standard Chartered Bank signed agreements to strengthen supply chain finance in India through risk-sharing arrangements covering both US dollar and rupee transactions. The agreements include a risk participation arrangement structured through Gujarat International Finance Tec-City (GIFT City) for US dollar-denominated transactions, and a partial guarantee facility agreement for onshore rupee transactions. A key feature is the focus on emerging and underserved segments, particularly distributor financing. This collaboration marks ADB's first engagement in this space within the Indian market.
