The Union Cabinet today approved India's Membership of European Bank for Reconstruction & Development (EBRD). After the approval, necessary steps will be initiated by the Department of Economic Affairs, Ministry of Finance to acquire the membership of European Development Bank.
Membership of European Development Bank would enhance India's international profile and promote its economic interests, the government said in a statement. India's investment opportunities would also get a boost.
It would increase the scope of cooperation between India and European Development Bank through co-financing opportunities in manufacturing, services, information technology and energy sectors.
European Development Bank's core operations pertain to private sector development in their countries of operation. The membership would help India leverage the technical assistance and sectoral knowledge of the bank for the benefit of development of private sector.
"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. This would open up new vistas for Indian professionals on the one hand, and give a fillip to Indian exports on the other," the government said.
It would also enable Indian nationals to get the employment opportunity in the Bank.
The minimum initial investment towards the membership of EBRD will be approximately one million euros. 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.