India’s development finance institution, the National Bank for Financing Infrastructure and Development (NaBFID), has accorded cumulative sanctions of approximately ₹3.03 lakh crore as of 31 December 2025, marking a significant expansion in long-term infrastructure financing capacity.
NaBFID is a specialised infrastructure Development Financial Institution established in 2021 by the Prime Minister Narendra Modi-led government to fund long-term infrastructure projects.
It focuses on addressing funding gaps in sectors such as transport and energy, aiming to foster economic growth by enabling non-recourse financing and developing bond markets.
Cumulative disbursements by NaBFID have reached about ₹1.09 lakh crore across core infrastructure as well as social and commercial sectors.
The update was provided in the Lok Sabha by Minister of State for Finance Pankaj Chaudhary while outlining measures undertaken to deepen India’s debt markets and strengthen their role in meeting long-term infrastructure financing needs.
“NaBFID has both financial and developmental objectives under its Act. As on 31 December 2025, it has accorded cumulative sanctions of ~₹3.03 lakh crore and cumulative disbursements of ~₹1.09 lakh crore across core infrastructure and social/commercial sectors,” the minister said.
According to the minister, NaBFID has advanced its developmental mandate through multiple initiatives, including the launch of a Partial Credit Enhancement product aimed at widening the investor base and public-private partnership transaction advisory to help build a pipeline of bankable projects.
The institution has also set up a GIFT City investment arm to crowd in foreign capital and expanded urban infrastructure financing, including investments of ₹520 crore in municipal bonds.
Strengthened multilateral development bank partnerships and engagement with state governments for asset monetisation, with NaBFID acting as an anchor investor in proposed Infrastructure Investment Trusts, form part of this strategy.
More broadly, the government is implementing policy and regulatory measures to create a diversified, market-driven infrastructure financing ecosystem.
These include targeted support for Public-Private Partnerships through Viability Gap Funding, frameworks for market instruments such as Infrastructure Investment Trusts, Real Estate Investment Trusts and Infrastructure Debt Funds, and strengthening long-term financing via the National Investment and Infrastructure Fund alongside NaBFID.
Additional steps, such as enabling targeted incentives in public debt issuances for categories including women, senior citizens, armed forces personnel and retail investors, easing compliance requirements, refining the Electronic Book Provider framework, and promoting ESG debt securities, are intended to improve transparency, price discovery and investor participation in domestic debt markets.
Together, these measures signal a policy push to de-risk infrastructure bond issuances, deepen capital markets and expand funding avenues critical for sustaining India’s infrastructure build-out.
