India and ADB sign $250 million agreement to boost industrial corridor development
India and the Asian Development Bank (ADB) have signed an agreement for a $250 million policy-based loan under the Industrial Corridor Development Programme (subprogramme 2). The aim is to enhance India’s industrial landscape, strengthening manufacturing competitiveness, fortifying national supply chains, and fostering links with regional and global value chains, ultimately generating high-quality jobs.
The agreement follows the ADB’s approval of a $250 million loan under subprogramme 1 in October 2021, a crucial step in reinforcing policy frameworks for the National Industrial Corridor Development Programme (NICDP). Launched in 2016 and updated in 2020, the NICDP aims to improve the planning and management of designated industrial economic clusters, attracting private infrastructure and manufacturing investments across 11 industrial corridors.
Hoe Yun Jeong, Deputy Country Director and Officer-in-Charge of ADB’s India Resident Mission, and a signatory to the agreement, highlighted that the subprogramme 2 loan will contribute to integrating industrial corridors with transport, logistics, and urban facilities, aligning with the government’s Gati Shakti platform. This integration is expected to promote gender equality in manufacturing and corridor development while focusing on the training and upskilling of workers in industrial corridors.
The second subprogramme aims to introduce alternative financing solutions, including green finance, for industrial cluster development. It also emphasizes enhancing industrial workplace safety and incorporating environmental and climate change practices in these areas. To improve the investment climate, the programme plans to introduce a synchronized central and state-level single window clearance system, along with digitizing processes to streamline logistics.
Anticipated to generate jobs in various manufacturing sectors such as agribusiness, automotives, electronics, food and beverages, heavy machinery, pharmaceuticals, and textiles, the programme is set to contribute significantly to poverty alleviation in the corridor states
