He said the current geopolitical environment presents multiple interconnected challenges, including those related to energy, food, debt, supply chains, and fiscal balance.
“These pressures underline the need for stronger and more coordinated responses. In this context, it is important that ADB moves beyond incremental approaches and adopts a more transformational approach to support sustainable and resilient regional development,” Chaudhary said.
He said even in this backdrop, India has continued to demonstrate resilience, supported by strong fundamentals and sustained reforms. At the same time, development needs remain large and require access to predictable, long-tenor, and affordable development finance, particularly for investments in infrastructure, climate transition, and human capital.
“Going forward, ADB will need to develop strategies that address the evolving needs of larger developing member countries (DMCs) such as India, which may approach their exposure limits in the coming years.
“It is therefore important that capital expansion measures, such as hybrid and callable capital, continue so that exposure limits do not constrain the development financing or borrowing programs of DMCs,” Chaudhary said.He further said that ADB’s engagement with DMCs will need to be further strengthened and scaled up to support a more connected and prosperous region.
Chaudhary also called for “meaningful reforms” like enhanced risk appetite, better use of balance sheets, and stronger engagement with the private sector in multilateral development banks.