Cabinet Approves India’s Membership For European Bank for Reconstruction & Development - JPKee.com

New Delhi, Nov 25: The Union Cabinet chaired by the Prime Minister Narendra Modi has approved India’s Membership for European Bank for Reconstruction & Development (EBRD). The decision was taken to expand its presence on the global developmental landscape beyond its association with the Multi-lateral Development Banks (MDBs) such as the World Bank, Asian Development Bank and African Development Bank. India is also the member of  the Asian Infrastructure Investment Bank (AIIB) and the New Development Bank (NDB).

Membership of EBRD would enhance India’s international profile and promote its economic interests. It would increase the scope of cooperation between India and EBRD through co-financing opportunities in manufacturing, services, Information Technology, and Energy.

EBRD’s core operations pertain to private sector development in their countries of operation. The membership would help India leverage the technical assistance and sectoral knowledge of the bank for the benefit of the development of private sector. The membership of EBRD would enhance the competitive strength of the Indian firms, and provide an enhanced access to international markets in terms of business opportunities, procurement activities, consultancy assignments etc.

Finacial Implication

The minimum initial investment towards the membership of EBRD will be approximately €1 (one) million. However, this assumption is based on India deciding to buy the minimum number of shares (100) required for obtaining the membership. If India were to buy a higher number of Bank shares, the financial implications could be higher. In-principle approval of the Cabinet at this stage is being obtained for joining the Bank.

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Author - Vikash Kumar