Cabinet approves India's membership for European Bank for Reconstruction & Development

The Union Cabinet has approved India’s Membership for European Bank for Reconstruction & Development (EBRD). Department of Economic Affairs, Ministry of Finance will take necessary steps to acquire the membership of the EBRD.

Significance

The membership of EBRD will enhance India’s international profile and promote its economic interests. It will give India access to EBRD’s Countries of Operation and sector knowledge. Moreover, it will boost India’s investment opportunities and also improve investment climate in country.
The membership of EBRD will help to increase scope of cooperation between India and EBRD through co-financing opportunities in manufacturing, services, energy and Information Technology. It will also help India leverage technical assistance and sectorial knowledge of EBRD for benefit of development of private sector.
The membership of EBRD will also enhance competitive strength of Indian firms and provide enhanced access to international markets in terms of business opportunities, procurement activities, consultancy assignments etc. It will open up new vistas for Indian professionals on one hand and give fillip to Indian exports on other. It will also have positive impact on employment generating potential due to increased economic activities. It will also enable Indian nationals to get employment opportunity in EBRD.

Background

Government has decided to expand its presence on the global developmental landscape beyond its association with the Multi-lateral Development Banks (MDBs) owing to country’s impressive economic growth over years and enhanced international political profile. So far, India is member of World Bank, Asian Development Bank and African Development Bank. It has also joined Asian Infrastructure Investment Bank (AIIB) and New Development Bank (NDB).

Month: Current Affairs - November, 2017