ADB's Private Sector Operations in India
India remains the largest market for the Asian Development Bank's (ADB) private sector operations, with the multilateral lender expecting to provide about USD 1 billion in direct financing this year to support projects aligned with the country's development objectives. ADB Vice-President (Market Solutions) Bhargav Dasgupta confirmed this in an interaction with PTI.
“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,” Dasgupta said. He added, “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.”
Focus Areas for 2026
Asked about the plan for this year, Dasgupta stated, “We will maintain the tempo on the private sector side.” He highlighted that the focus areas for private sector financing include renewable and clean energy, green hydrogen, e-mobility, and green data centres. Other key sectors are 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 noted.
Trade and Supply Chain Finance Growth
On trade and supply chain financing, Dasgupta reported a 40 per cent jump in the first four months of 2026 due to the West Asia crisis. These financing mechanisms support the import of fertiliser, energy, and food, which are critical for many countries.
Last month, 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) to support US dollar-denominated transactions, and a partial guarantee facility agreement to support onshore rupee transactions.
A key feature of this partnership is its focus on emerging and underserved segments of supply chain finance, particularly distributor financing. This collaboration represents ADB's first engagement in this space within the Indian market.
