5th Annual Meeting of NDB | 21 Apr 2020

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:

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.
  • Objectives:
    • 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.

Source: PIB