India's AI and rare earths push to attract global funds, signalling new investment era for nation: ADB's Chatterton

NEW DELHI: Global investors have a positive outlook on India because of a stable, enabling environment and a pro-business approach in emerging sectors such as artificial intelligence data centres and processing of rare earths and critical minerals, the Asian Development Bank said.The multilateral bank’s private sector investment operations in India, a key part of its global investment portfolio, will continue to go up in sectors including renewable energy and financing of micro, small and medium enterprises, Isabel Chatterton, ADB’s director general of private sector operations department, said in an interview. Microfinance, agriculture, skilling and affordable housing too are areas that ADB finances.A fifth of ADB’s global investments is in India.

In 2025, ADB invested $1 billion of its own funds in India’s private sector, out of its global investment of $5 billion and mobilized another $1 billion into projects in India, Chatterton said, quoting preliminary figures.Chatterton is in India to discuss new business opportunities with investors and companies to deliver development through the private sector. She said India has done well in spotting emerging sectors early and providing a conducive environment to attract private investments.“During my current visit to India and of course, in the five months that I've been in my new role, I found the sentiment overall to be positive.

Investors attribute this to the stable, enabling environment in India encompassing well-thought-out government policies, regulatory frameworks and a supportive environment with the right incentives. That's the first and most important consideration for investors.