Cabinet approves India's membership for EBRD
The Dollar Business Bureau
The Cabinet on Wednesday permitted the membership of India for the European Bank for Reconstruction and Development (EBRD), a step that will help the country in obtaining funds in various sectors such as manufacturing and services.
“The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved India's Membership for European Bank for Reconstruction & Development (EBRD),” said an official statement.
“Necessary steps will be initiated by the Department of Economic Affairs, Ministry of Finance to acquire the membership of the EBRD,” it added.
The membership of the multilateral institution will enhance the scope of cooperation between EBRD and India through opportunities for co-funding in various sectors such as manufacturing, services, energy and information technology (IT).
With EBRD membership, India’s investment opportunities would get a boost. It would also enhance India’s international profile, promote its economic interest and provide access to EBRD’s Countries of Operation and sector knowledge, the statement said.
“The key operations of EBRD pertain to the development of private sector in their operating countries. This would help India to leverage the sectoral knowledge and technical assistance of the bank for private sector development,” it said.
“The membership of EBRD would enhance the competitive strength of the Indian firms, and provide an enhanced access to international markets in terms of business opportunities, procurement activities, consultancy assignments, etc,” it added.
This would also give a fillip to country’s exports as well as open up new vistas for Indian professionals.
The initial minimum investment towards the EBRD membership would be around 1 million euro (approx. Rs.7.63 crore).
“However, this assumption is based on India deciding to buy the minimum number of shares (100) required for obtaining the membership. If India were to buy a higher number of bank shares, the financial implications could be higher,” the statement said.
At this stage, the Cabinet’s in-principle approval is being obtained to join the Bank, it added.