GS Paper - 3 (Economy)

The Asian Development Bank (ADB) on 6 February 2022 said it provided a record USD 4.6 billion loans to India in 2021, including USD 1.8 billion towards coronavirus response. The ADB's regular funding programme to India is made to support transport, urban development, finance, agriculture, and skills building.

What

  1. The Asian Development Bank committed a record USD 4.6 billion in sovereign lending to India in 2021 for 17 loans, including USD 1.8 billion for the country's coronavirus disease (COVID-19) pandemic response.
  2. ADB adopts a multidisciplinary approach and incorporates Finance Plus elements based on its comparative advantage, knowledge base and value addition.
  3. The agency extended USD 2.2-billion support for 12 state projects, committed to its geographically balanced programming.
  4. The funding body said its strategic engagement with states will include knowledge support to navigate their emerging development challenges.
  5. The ADB's project portfolio in 2021 reflected the Indian government's focus on transforming cities into economically vibrant and sustainable communities.
  6. This included financing for India's national urban flagship missions to enhance access to water, sanitation, and affordable housing and promote performance-based fiscal transfer to urban local bodies; enhancing mobility through metro network expansion in Bengaluru; and strengthening flood-risk management in Chennai's urban areas.

Flashback

  1. ADB was conceived in the early 1960s as a financial institution that would be Asian in character and foster economic growth and cooperation in one of the poorest regions in the world.
  2. A resolution passed at the first Ministerial Conference on Asian Economic Cooperation held by the United Nations Economic Commission for Asia and the Far East in 1963 set that vision on the way to becoming reality.
  3. The Philippines capital of Manila was chosen to host the new institution, which opened on 19 December 1966, with 31 members that came together to serve a predominantly agricultural region. Takeshi Watanabe was ADB's first President.