The Union Minister of Finance recently attended the 5th Annual Meeting of the Board of Governors of New Development Bank (NDB) via video conference in New Delhi. In this meeting, several key issues were discussed and noteworthy decisions were made, which will have significant implications for the BRICS countries and wider global community.
Key Highlights from the Meeting
India expressed its appreciation for NDB’s efforts in establishing itself as a credible Global Financial Institution. The bank has been successful in adhering to its mandate of promoting a sustainable and inclusive approach towards development.
In response to the Covid-19 pandemic, NDB fast-tracked financial assistance to the tune of $5 billion to BRICS countries. This included an Emergency Assistance package of $1 billion extended to India. Furthermore, it was suggested that the assistance under this facility be increased to $10 billion.
Brazil showed gratitude to India for providing critical drugs required for timely management of the novel coronavirus. Attendees at the meeting encouraged NDB to consider joining the G-20 forum, along with other Multilateral Development Banks (MDBs) and International Financial Institutions (IFIs) such as the World Bank, Asian Development Bank (ADB), and Asian Infrastructure Investment Bank (AIIB).
India appealed to NDB to adopt innovative practices in supporting BRICS nations to achieve their Sustainable Development Goals.
India’s Response Measures
The meeting also highlighted various measures taken by India in response to the health crisis. These include:
– The India Covid-19 Emergency Response and Health System Preparedness Package: The Indian government allocated $2 Billion to strengthen the healthcare system.
– The Pradhan Mantri Garib Kalyan Yojana: A social support scheme valued at $23 Billion, designed to alleviate the hardship of the poor and vulnerable.
– Insurance cover of $67,000 per person to over 2.2 million frontline health workers.
– The easing of monetary policy by the Reserve Bank of India and three-month moratorium on loan installments.
– The creation of a Covid-19 Emergency Fund for SAARC countries.
– Critical medicine supplied to nations in need, such as through Operation Sanjeevani.
About New Development Bank
The New Development Bank is a multilateral development bank founded jointly by the BRICS countries (Brazil, Russia, India, China, and South Africa) at the 6th BRICS Summit in Fortaleza, Brazil in 2014. The bank’s mission is to support infrastructure and sustainable development efforts in BRICS and other underserved, emerging economies.
The NDB is headquartered in Shanghai, China. In 2018, the NDB received observer status in the United Nations General Assembly, establishing a strong basis for active cooperation with the UN.
The main objectives of the NDB include fostering the development of member countries, supporting economic growth, promoting competitiveness, facilitating job creation, and building a knowledge sharing platform among developing countries.
To fulfill its purpose, the Bank supports public or private projects through loans, guarantees, equity participation, and other financial instruments. So far, the NDB has approved 14 projects in India for an amount of $4,183 million.
