India and the Asian Development Bank (ADB) have signed an agreement for a $250 million policy-based loan under the National Industrial Corridor Development Programme/NICDP (subprogramme 2).
Key points
- The aim is to enhance India’s industrial landscape, strengthening manufacturing competitiveness, fortifying national supply chains, and fostering links with regional and global value chains, ultimately generating high-quality jobs.
- The agreement follows the ADB’s approval of a $250 million loan under subprogramme 1 in October 2021, a crucial step in reinforcing policy frameworks for the National Industrial Corridor Development Programme (NICDP).
- Launched in 2016 and updated in 2020, the NICDP aims to improve the planning and management of designated industrial economic clusters, attracting private infrastructure and manufacturing investments across 11 industrial corridors.
- The second subprogramme aims to introduce alternative financing solutions, including green finance, for industrial cluster development. It also emphasizes enhancing industrial workplace safety and incorporating environmental and climate change practices in these areas.
