The shareholders of the London-based multilateral lender European Bank of Reconstruction and Development (EBRD) have agreed to the India becoming its 69th member. India has formally applied for membership on December 18, 2017.
- After the approval of Indian membership, India is expected to join EBRD within the first half of the year.
Benefits to India
- India’ membership will enable Indian companies to undertake joint investments in regions in which the EBRD operates. Although Indian businesses have already cooperated on EBRD projects worth some €982 million, it is expected that membership, which will see India take up a small stake in the bank, would spur further 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.
- London based EBRD (European Bank of Reconstruction and Development) was set up in 1991, based on a proposal by former French President Francois Mitterand.
- The largest shareholder of EBRD is currently the U.S.
- The bank’s initial focus was helping central and Eastern European nations reconstruct their economies in the post-Cold War era.
- It remains committed to furthering the development of “market-orientated economies and the promotion of private and entrepreneurial initiative.
- Other members who receive investments include Mongolia, Turkey, Egypt, Cyprus, Greece and Lebanon, among a total of 38 member states. Others including China, Russia, the U.S., U.K., and France are stakeholders, whose companies are able to invest in EBRD projects, but do not receive financing for domestic projects.
- 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.
- The EBRD signed a pact n 2017 with the International Solar Alliance, which was unveiled in 2015 in Paris.