By signing a policy-based loan agreement for the amount of $250 million on December 15, 2023, the Government of India and the Asian Development Bank (ADB) have recently strengthened their partnership.

In order to improve industrial competitiveness, strengthen national supply networks, and integrate with global value chains, this financial support is being provided as part of the Industrial Corridor Development Programme (Subprogramme 2), which is a subprogramme.

india and ADB

Prolonged Assistance and Principal Signatories

While Mr. Hoe Yun Jeong, Deputy Country Director and Officer-in-Charge of the Asian Development Bank’s India Resident Mission, signed on behalf of the Asian Development Bank, Ms. Juhi Mukherjee, Joint Secretary of the Department of Economic Affairs, Ministry of Finance, represented the Government of India.

For the National Industrial Corridor Development Programme (NICDP), this agreement is a continuation of the Subprogramme 1 loan of $250 million that was approved in October 2021.

This loan was crucial in the formation of policy frameworks for the NICDP.

Increasing the Existence of Industrial Corridors

Initiated in 2016, the National Industrial Corridor Development Program (NICDP) is a program that focuses on the efficient development of industrial corridors.

Within the framework of the Prime Minister Gati Shakti platform, the Subprogramme 2 loan will further integrate industrial corridors with transport, logistics, and urban infrastructure, with an emphasis on complete development.

Equality between the sexes and the cultivation of skills

Through his presentation, Mr. Jeong brought attention to the broader goals of the loan, which include the promotion of gender equality in manufacturing and the development of corridors.

In order to contribute to a workforce that is more diverse and skilled, the money will be used to support projects that provide workers within industrial corridors with training and opportunities to improve their skills.

Alternative methods of financing and environmentally responsible practices

To encourage the establishment of sustainable industrial clusters, Subprogramme 2 places an emphasis on the implementation of alternative financing methods, such as green finance.

Enhancing job safety, including environmental practices, and addressing concerns about climate change within industrial zones are all among the priorities of the effort.