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India to join multilateral lender EBRD

India to join multilateral lender EBRD

Context:

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.

Significance:

  • “This is an important step in the relationship between the EBRD and India, allowing to build further on already very close ties
  • Increase in 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.
  • India’s stake will also give it a say in the direction of the EBRD’s future work.

Know about EBRD:

  • Set up in 1991, based on a proposal by former French President Francois Mitterand
  • Headquarter-London
  • The bank’s initial focus was helping central and Eastern European nations reconstruct their economies in the post-Cold War era.
  •  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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