The Asian Development Bank (ABD) contributed USD 3 billion in sovereign loans to India in 2018, the largest amount since sovereign operations started in the country in 1986. India was the biggest receiver of funds from the multilateral funding institution and would continue to borrow sovereign loans exceeding USD 3 billion in 2019 as well, the bank’s president, Takehiko Nakao said.
“We will continue to lend this kind of level (during 2019),” he said at the 52nd annual meeting of the bank. Also, the debt-GDP ratio is decreasing, which is providing more margin for lending, he further added.
He clarified that ABD will continue its funding for urban development, skill development and rural connectivity. “There are merits over investment, but at the same time we have to be careful… we must find good project with good return, even if the lending is to the government. Each identified project should have sound economic grant with good returns…also we should pay attention to social and environmental impact,” he said.
Last year, India got nearly 25 per cent of the total loan granted. New promises included grants and investments, and USD 21.6 billion in loans from ADB’s own resources. These amount to a growth from the targeted USD of 19.71 billion, which is 10% more as compared to what India received in 2017.