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India officially became 69th shareholder of European Development Bank: Details
India officially became 69th shareholder of European Development Bank: Details, Highlights, Benefits
India officially became the 69th shareholder of the European Bank for Reconstruction and Development (EBRD) on 11th July 2018, leading the way for more joint investment with Indian companies across the bank's regions of operation.
India was selected as a member after all the existing EBRD shareholders, who also form its board of governors, voted unanimously in favor of the country's application in March 2018. The membership process was fully completed this week.
Earlier, the Government of India had applied for EBRD membership in December 2017. Though now, India has become a shareholder of the EBRD, it will not be a recipient of the bank’s financing.
Benefits
India’s membership in the EBRD is believed to open up further prospects of joint investment in markets including Central Asia, Egypt and Jordan.
It would also boost India's international profile and promote its economic interests and give it access to EBRD's Countries of Operation and sector knowledge, boosting investment opportunities.
It would also increase the scope of cooperation between India and EBRD through co-financing opportunities in manufacturing, services, information technology and energy. Increased economic activities could lead to the creation of more employment opportunities.
Background
The European Bank for Reconstruction and Development has already cooperated with Indian enterprises on several joint projects worth almost €1 billion, including investments with Indian companies such as Tata, SREI, Jindal and Mahindra and Mahindra.
