India largest borrower, says ADB

The Asian Development Bank has given an indicative country strategy programme for India, where it has pegged the cumulative ceiling of up to $7.5 billion over the next four years.

The CSP proposes 33 loans for the period 2003-2006, with overall lending increasing in a phased manner.

India continues to be the largest borrower of funding from ADB.

According to a press statement released by the Manila-based institution, India accounted for 25 per cent of ADB's total loans at $1.53 billion in the calendar year 2003. The other top borrowing countries include China with $1.49 billion, Pakistan with $871 million and Bangladesh with $532 million.

ADB's total operations grew by 7.6 per cent to $6.3 billion according to its annual report 2003 released on Tuesday. Lending made up 97 per cent of total operations -- the highest level since 1997. The development lending institution's private sector operations increased sharply in 2003, more than doubling to $562.7 million.

This it stated reflects its growing emphasis on that area of development. "Private-sector spending rose 174 per cent from a year earlier, with the majority of projects in India, Bangladesh, China, Vietnam and the Philippines," it stated.

A total of 315 technical assistance grants amounting to $176.5 million were approved in 2003. The largest recipient of country-specific technical assistance (excluding regional technical assistance) was India at $14.7 million (12%), followed by China $14.3 million (11%), Indonesia $12.5 million (10%), Afghanistan $10.5 million (8%), and Pakistan $10.0 million (8%).

On ADB's new strategy and programme for India, the institution will focus on mainstreaming poverty reduction, primarily through growth that will be pro-poor, in line with the Government's 10th Five-Year Plan for 2002-2007.

According to the programme, poverty intervention projects account for 42 per cent of the lending programme by number and 36 per cent by lending volume.

Transport projects will account for 45 per cent of the loans and energy projects another 24 per cent. About 13 per cent consists of urban social infrastructure projects and 11 per cent will be in the financial sector.

Projects in agriculture and natural resources amount to 4 per cent, while public finance and core governance interventions make up the balance of three per cent.

"Growth interventions will be complemented by social development and environmental protection activities to support the 10th Plan's emphasis on human poverty reduction alongside income poverty reduction," said Louis de Jonghe, Country Director of ADB's India Resident Mission in Delhi.