The Government of India and the Asian Development Bank (ADB) sealed a significant partnership on December 15, 2023, by signing a $250 million policy-based loan. This collaborative effort, known as the Industrial Corridor Development Programme (Subprogramme 2), aims to propel the development of industrial corridors, enhancing the competitiveness of manufacturing, fortifying national supply chains, and bolstering connections with regional and global value chains. The initiative is poised to generate more employment opportunities and foster economic growth.
The loan agreement was inked by Juhi Mukherjee, Joint Secretary, Department of Economic Affairs, Ministry of Finance, representing the Government of India, and Hoe Yun Jeong, Deputy Country Director and Officer-in-Charge of ADB’s India Resident Mission, representing ADB.
This funding builds upon the success of the $250 million Subprogramme 1 loan approved by ADB in October 2021. Subprogramme 1 played a pivotal role in strengthening policy frameworks for the National Industrial Corridor Development Programme (NICDP) launched by the Indian government in 2016 and updated in 2020, focusing on the development of 11 industrial corridors.
Juhi Mukherjee expressed gratitude for ADB’s continuous support in implementing the NICDP effectively. She highlighted the program’s significance in attracting private infrastructure and manufacturing investments, creating economic clusters, and fostering sustainable growth.
Jeong emphasized that the Subprogramme 2 loan will facilitate the integration of industrial corridors with transport, logistics, and urban facilities, aligning with the government’s Gati Shakti platform. Furthermore, it will champion gender equality in manufacturing and corridor development, offering training and up-skilling opportunities for workers within industrial corridors.
The second subprogramme will also focus on developing alternative financing solutions, including green finance, to drive industrial cluster development. Additionally, it will enhance industrial workplace safety and incorporate environmental and climate change practices. To improve the investment climate and align with the ease of doing business, the program will introduce a synchronized Central and State-level single window clearance system, digitizing processes to streamline logistics.
