SYLLABUS

GS-2: Government policies and interventions for development in various sector; Important International institutions.

Context: 

Recently, Government of India and Asian Development Bank signed a $126.4 million loan agreement to promote sustainable tourism in Uttarakhand. 

About the Project

• The project targets Tehri Garhwal, one of Uttarakhand’s most climate-vulnerable and economically disadvantaged districts, promoting sustainable, climate-resilient tourism to drive rural development.
• The project interventions include institutional strengthening, climate-resilient infrastructure, nature-based measures to curb landslide and flood risks, and inclusive tourism services driven by women, youth and the private sector.
• The project will cover Tehri Lake, a man-made reservoir created by the Tehri Dam on the Bhagirathi River and aims to benefit more than 87,000 local residents and 2.7 million annual visitors.
• Project funds will be used for improved tourism planning, upgraded infrastructure, enhanced sanitation and waste management, and disaster preparedness.
• The initiative aligns with Uttarakhand’s policy to position itself as a diversified, all-weather tourism destination.
• ADB highlighted the project as a model for sustainable tourism anchored around a hydropower lake, focusing on job creation, income diversification, and climate resilience.

India’s Tourism Sector

• India’s tourism sector is rich in heritage, culture, and diversity, and is emerging as a global favorite and a key driver of economic growth.
• The Union Budget 2025-26 has allocated ₹2541.06 crore to enhance infrastructure, skill development, and travel facilitation.
• In 2023, the sector contributed 5% to GDP, created 7.6 crore jobs, earned 1.8% of global tourism receipts and ranked 14th worldwide.
• 40 projects across 23 states will receive ₹3295.8 crore in 50-year interest-free loans under Special Assistance to States for Capital Investment.
• With committed efforts, tourism is set to drive India’s progress towards becoming a developed nation by 2047.

Asian Development Bank (ADB)

• ADB is a regional development bank established in 1966 to support inclusive, resilient, and sustainable growth across Asia and the Pacific. 
• ADB has 69 shareholding members, including 50 from Asia.
• ADB's highest policy-making body is the Board of Governors, which comprises one representative from each member nation (currently 69).
• India is a founding member of the Asian Development Bank (ADB) and its fourth largest shareholder.
• ADB is headquartered in Manila, Philippines.

Source:
The Hindu
Travel And Tour World
ADB