India to join multilateral lender EBRD
- India has got the go-ahead to join the European Bank of Reconstruction and Development (EBRD), after shareholders of the London-based multilateral lender agreed to the country becoming its 69th member, enabling Indian companies to undertake joint investments in regions in which the EBRD operates.
- Set up in 1991, based on a proposal by former French President Francois Mitterand, the bank’s initial focus was helping central and Eastern European nations reconstruct their economies in the post-Cold War era.
- It remains committed to furthering the development of “market-orientated economies and the promotion of private and entrepreneurial initiative.”
- Other members who receive investments include Mongolia, Turkey, Egypt, Cyprus, Greece and Lebanon, among a total of 38 member states.
- Others including China, Russia, the U.S., U.K., and France are stakeholders, whose companies are able to invest in EBRD projects, but do not receive financing for domestic projects.
- While Indian businesses have already cooperated on EBRD projects worth some €982 million, the hope is that the membership, which will see India take up a small stake in the bank, would spur further investment by Indian firms in a range of sectors from solar to utilities, providing them access to fast growing markets. It will also enable Indian citizens to work for the organisation.
- The EBRD’s largest shareholder is currently the U.S., while other G7 nations also hold significant stakes.
- Following the approval of Indian membership, India is expected to join EBRD within the first half of the year.
- The EBRD works with the private sector and also local governments in the provision of services and infrastructure across 38 nations – with projects ranging from transport provision to agribusiness, heating, waste management, to renewable energy.
- In 2017, the EBRD signed a pact with the International Solar Alliance, which was unveiled in 2015 in Paris.
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