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You are here: Home / cat / ADB Approves $126 Million Loan to Boost Rural Tourism Development in India

ADB Approves $126 Million Loan to Boost Rural Tourism Development in India

Dated: August 7, 2025

The Asian Development Bank (ADB) has approved a $126.42 million loan along with $1 million in technical assistance to promote rural development through sustainable and climate-resilient tourism in the Tehri Lake area of Uttarakhand, India. This initiative is aimed at enhancing the livelihoods of people in the Tehri Garhwal District—one of the most economically challenged and climate-vulnerable hill regions in Uttarakhand.

This project addresses several pressing issues in the region, including rising risks from droughts, fires, and floods, high rates of out-migration, and a sharp increase in tourist arrivals. It aligns with ADB’s Country Partnership Strategy for India (2023–2027), which prioritizes rural development through tourism, private sector involvement, and the creation of climate-resilient infrastructure and services.

ADB’s support is expected to directly benefit over 87,000 local residents and 2.7 million tourists annually. Planned improvements include upgraded tourism planning, visitor facilities, better sanitation and solid waste management, and enhanced disaster preparedness in the region.

The project uses a multisector strategy to boost employment, diversify income sources, and enhance resilience around Tehri Lake. This will be achieved through institutional strengthening, the development of infrastructure such as transport, water supply, waste management, and recreational facilities, as well as nature-based solutions to mitigate landslides and flooding.

Additionally, the project introduces a livelihood matching grant program focused on empowering women, youth, and small businesses in tourism. It will also ensure universal accessibility in its design and launch a women-led disaster risk management initiative in villages that are particularly prone to environmental hazards such as landslides, droughts, and fires.

As a key development partner, ADB continues to play a significant role in fostering inclusive and sustainable tourism in India, while supporting broader climate and development goals across Asia and the Pacific.

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