The Asian Development Bank will double its lending to India to $2.65 billion by 2008, ADB President Haruhiko Kuroda said on Wednesday.
"ADB is proud of its commitments in India and hopeful of further strengthening cooperation. The funding will be more than doubled," Kuroda announced at a media conference on the sidelines of the four-day 39th annual general meeting of the ADB which commenced in Hyderabad.
The main focus of the new funding from the multilateral body would be transport, water, energy management and urban development, he said.
Commending Indian economy for its stellar performance leading to accelerated growth in the last decade, the ADB president, however, felt that the country needed more investments in infrastructure, education and social sectors and strategies for improving employment generation. The country also needed to push forward economic reforms.
He said that this was for the second time that the ADB board of governors annual meeting was being held in India.
"The last time, we held the meeting in India was in 1990 in New Delhi. It is incredible to see the tremendous progress this country has made since then. I think Hyderabad is a vibrant example of this," he said.
"China and India have witnessed very rapid growth which also reduced poverty in the two countries. In the next decade or so, poverty eradication will be desirable and necessary for both the economies. Job creation and employment generation will be a major challenge in both the economies," he said.
Kuroda said: "Energy will be one possible constraint for sustainable growth. Both the countries are trying to improve energy efficiency and develop alternative energy sources.
"This is my second annual meeting and I am looking forward to discussing a number of issues on our development agenda in the coming days. Over the past 12 months, I have had a chance to travel to various parts of the region. I have seen how economies are growing and opportunities are expanding," he pointed out.
"This is a critical moment for Asia. How we respond to these challenges will shape the region's future. The ADB's role in the region's response will feature prominently among the issues we will be discussing over the next few days," Kuroda said.
"We expect to finalise a new medium-term (2006-08) strategy for ADB soon after this annual meeting. I expect the strategy will confirm ADB's fundamental goal of poverty alleviation and intensify our focus on a few key areas, as well as regional cooperation and integration. Wise action in these areas will help Asia secure a peaceful and prosperous future," he said.
