Sitharaman urges ADB to speed up funding deals

Finance minister Nirmala Sitharaman has called on the Asian Development Bank (ADB) to reduce the time taken for approving both sovereign and non-sovereign loans and to expedite capital expansion measures supporting developing economies.

Speaking at the 58th annual meeting of the ADB Board of Governors in Milan, Sitharaman said there is a need for efficiency improvements in lending operations.

“It’s an old adage that time is money. It holds relevance still. Process reforms for reduction in processing time, both for sovereign and non-sovereign operations, shall benefit the DMCs (developing member countries) significantly,” she said.

Union Finance Minister Smt. @nsitharaman met Mr. Masato Kanda @ADBPresident during the 58th #ADBAnnualMeeting in Milan, Italy, today.

The Union Finance Minister reiterated that India focuses on private sector-led economic growth and has been consistently creating a conducive… pic.twitter.com/mjiqXliKSB

— Ministry of Finance (@FinMinIndia) May 5, 2025

Sitharaman urged the ADB to take further efforts in capital expansion and management through measures such as exposure exchange agreements, hybrid capital, callable capital, and the innovative finance facility for climate in Asia and the Pacific. These are essential to ensure borrowing programs of developing countries are not limited by lending limits, she said.

“We look forward to expeditious action on capital expansion/management measures… to ensure that the exposure limits do not pose restrictions to borrowing programs of DMCs,” she said.

India has been a significant partner of the ADB, with the bank having supported 789 projects in the country through sovereign loans, equity investments, guarantees, and technical assistance standing at about $60 billion as of April this year.

An additional $8 billion has been directed towards private sector projects.

Sitharaman also called for the bank to maintain a country-led and differentiated approach, in line with the priorities of developing countries.

She welcomed the ADB’s increasing focus on driving private capital and shifting towards greater engagement with the private sector.

On digital transformation, Sitharaman said India was willing to support ADB’s Strategy 2030 goals.

“We are happy to note that digital transformation is one of the five identified strategic priority areas under the Strategy 2030. We would be eager to support ADB in its digital transformation agenda,” she said.

Sitharaman also held bilateral discussions with ADB president Masato Kanda, Italian finance minister Giancarlo Giorgetti, Japanese finance minister Katsunobu Kato, and Bhutanese finance minister Lyonpo Namgay Dorji.

In the meeting with Kanda, discussions focused on India’s potential as a testing ground for innovative financing products.

Talks with the Italian finance minister focused on enhancing bilateral cooperation under the Joint Strategic Action Plan 2025–2029, which was announced during the meeting between Prime Minister Narendra Modi and Italian Prime Minister Giorgia Meloni last November.

Meanwhile, during the annual meeting, Kanda called for collective action towards uncertainty in the Asia-Pacific.

“External shocks, debt burdens, and climate change weigh heavily on the people and economies of the region. But we are not starting from zero. Growth remains solid, trade and economic integration are deepening, supply chains are diversifying, and digital connectivity and innovation are accelerating,” Kanda said.