The Asian Development Bank (ADB) expects to provide about $1 billion in direct financing to India's private sector in 2026, maintaining the same tempo as the prior year, according to ADB Vice-President (Market Solutions) Bhargav Dasgupta.
2025 Funding and 2026 Outlook
India remains the largest market for ADB's private sector operations. In 2025, the multilateral lender deployed over $2 billion to the country's private sector through a combination of direct financing and mobilised funds.
"Last year, we did more than $4 billion for sovereign and more than $1 billion for the private sector from our own capital," Dasgupta told PTI. "We mobilised an equal amount for them from other sources. In effect, the flow was $2 billion to private sectors through the ADB in 2025."
For 2026, Dasgupta said: "We will maintain the tempo on the private sector side."
ADB will continue financing sectors aligned with India's development priorities, including:
- Renewable and clean energy
- Green hydrogen
- E-mobility
- Green data centres
- Urban infrastructure development
- Sustainable agriculture
- Financial inclusion
"This is in complete alignment with what the Government of India wants because our country partnership agenda is co-created with the government," Dasgupta added.
Trade and Supply Chain Finance Surge
Trade and supply chain financing activity has risen sharply in 2026. ADB recorded a 40% jump in the first four months of the year, attributed to the West Asia crisis. These facilities are supporting the import of fertiliser, energy, and food—critical inputs for many economies.
| Metric | 2025 Actual | 2026 Target/Year-to-Date |
|---|---|---|
| ADB direct private sector financing (own capital) | >$1 billion | ~$1 billion (planned) |
| Mobilised from other sources | ~$1 billion | Not specified |
| Total private sector flow via ADB | $2 billion | Not specified |
| Trade & supply chain finance growth (Jan–Apr 2026) | — | +40% year-on-year |
Risk-Sharing Partnerships with Standard Chartered
Last month, ADB and Standard Chartered Bank signed agreements to strengthen supply chain finance in India through risk-sharing arrangements covering both US dollar and rupee transactions.
- A risk participation arrangement structured through Gujarat International Finance Tec-City (GIFT City) to support USD-denominated transactions.
- A partial guarantee facility agreement to support onshore rupee transactions.
A key feature of the partnership is its focus on emerging and underserved segments of supply chain finance, particularly distributor financing. The collaboration marks ADB's first engagement in this space within the Indian market.
Implications for Trade Finance and Corporate Borrowers
For CFOs and treasury professionals, ADB's sustained private-sector commitment signals continued availability of multilateral development finance for critical infrastructure and supply chain resilience. The 40% surge in trade and supply chain financing underscores heightened demand for working capital support amid geopolitical disruptions, particularly for essential imports. The dual-currency risk-sharing facilities through GIFT City provide tools to manage FX exposure, while the focus on distributor financing opens new avenues for smaller enterprises in the supply chain. ADB's alignment with government priorities ensures that financed projects—from green hydrogen to urban infrastructure—benefit from policy stability and co-investment opportunities.
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