5th Annual Meeting of NDB
- 21 Apr 2020
- 4 min read
Why in News
Recently, the Union Minister of Finance attended the 5th Annual Meeting of the Board of Governors of New Development Bank (NDB) through video-conference in New Delhi.
Key Highlights of the Meeting
- India appreciated NDB’s efforts in establishing itself as a credible Global Financial Institution, delivering its mandate successfully by taking a more sustainable and inclusive approach.
- NDB fast-tracked financial assistance of about $5 billion to BRICS countries including Emergency Assistance of $1 billion to India to combat Covid-19 pandemic.
- The assistance under this facility was suggested to be enhanced to $10 billion.
- Brazil thanked India for sending critical drugs for timely management of novel coronavirus in Brazil.
- NDB was encouraged to take appropriate actions to join the G-20 forum along with other Multilateral Development Banks (MDBs) and International Financial Institutions (IFIs) like the World Bank, Asian Development Bank (ADB), Asian Infrastructure Investment Bank (AIIB), etc.
- India urged NDB to follow novel practices in supporting the BRICS nations for achieving their Sustainable Development Goals.
- Measures taken by India to respond to the health crisis and to mitigate its impact were highlighted. Few of them are:
- India Covid-19 Emergency Response and Health System Preparedness Package: Allocation of $2 Billion (₹15,000 crore) by the Government of India for strengthening the healthcare system.
- Pradhan Mantri Garib Kalyan Yojana: Announcement of a scheme of social support measures amounting to $23 Billion (₹1.70 lakh crore) to alleviate the hardship of the poor and the vulnerable.
- Insurance cover of $67,000 (₹50 lakh) per person to over 2.2 million frontline health workers and others provision of relief to firms in statutory and regulatory compliance matters
- Easing of monetary policy by the Reserve Bank of India (RBI) and three-month moratorium on loan instalments.
- Creation of a Covid-19 Emergency Fund for SAARC countries.
- India’s efforts in supplying critical medicine to the countries in need (e.g. Operation Sanjeevani), to tackle the Covid-19.
New Development Bank
- It is a multilateral development bank jointly founded by the BRICS countries (Brazil, Russia, India, China and South Africa) at the 6th BRICS Summit in Fortaleza, Brazil in 2014.
- It was formed to support infrastructure and sustainable development efforts in BRICS and other underserved, emerging economies for faster development through innovation and cutting-edge technology.
- It is headquartered at Shanghai, China.
- In 2018, the NDB received observer status in the United Nations General Assembly, establishing a firm basis for active and fruitful cooperation with the UN.
- Fostering development of member countries.
- Supporting economic growth.
- Promoting competitiveness and facilitating job creation.
- 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.
- NDB has so far approved 14 projects in India for an amount of $4,183 million.