On December 15, 2023, the Government of India and the Asian Development Bank (ADB) formalized a significant collaboration by signing a $250 million policy-based loan. This financial infusion, dedicated to the Industrial Corridor Development Programme, marks a pivotal step towards enhancing manufacturing competitiveness, fortifying national supply chains, fostering links with regional and global value chains, and generating more high-quality employment opportunities.
The signatories to this landmark loan agreement were Ms. Juhi Mukherjee, Joint Secretary, Department of Economic Affairs, Ministry of Finance, representing the Government of India, and Mr. Hoe Yun Jeong, Deputy Country Director, and Officer-in-Charge of ADB’s India Resident Mission, representing the Asian Development Bank.
This loan builds on the $250 million through various out of which Subprogrammes 1 loan approved by ADB in October 2021 that helped strengthen policy frameworks for the Government of India’s National Industrial Corridor Development Programme (NICDP) and develop 11 industrial corridors.
“The loan for the Subprogramme 2 will help in the integration of industrial corridors with transport, logistics and urban facilities under the government’s Prime Minister Gati Shakti platform,” said Mr. Jeong. “It will promote gender equality in manufacturing and corridor development, as well as conduct training and upskilling of workers in industrial corridors.”
In addition, the other subprogramme will help industrial corridors develop alternative financing solutions, such as green finance, for industrial cluster development. It will also improve industrial workplace safety and integrate environment and climate change practices in these areas. To help improve the investment climate, and in line with the ease of doing business, the programme will introduce a synchronised Central and State-level single window clearance system and digitise processes to streamline the logistics process.
The programme is expected to create jobs in the manufacturing sector in industrial nodes, covering areas such as agribusiness, automotives, electronics, food and beverages, heavy machinery, pharmaceuticals, and textiles. It will contribute to alleviation of poverty in the corridor states.
