Facts for Prelims (FFP)
Context: The New Development Bank (NDB) has launched its Indian Regional Office (IRO) in Gujarat International Finance Tec-City (GIFT City).
Objective: The establishment of the IRO aims to address infrastructure and sustainable development needs in India and Bangladesh, contributing to economic growth and sustainable development in South Asia.
Other offices of NDB: The NDB already has regional offices in Africa, the Americas, and Eurasia.
About the New Development Bank (NDB):
|About||NDB (est. 2014; HQ: Shanghai) is a multilateral development bank founded to mobilise resources for infrastructure and sustainable development projects in emerging markets and developing countries. It received observer status in the United Nations General Assembly in 2018.|
|Member||BRICS nations, Bangladesh, UAE, Egypt|
|Major Projects||Committed funding to major infrastructure projects in India, including Mumbai Metro rail, Delhi-Ghaziabad-Meerut Regional Rapid Transit System, and Renewable Energy projects; Approved 14 Indian projects with a total funding of nearly USD 4.2 billion; Signed a 1 billion USD loan pact with India in 2020 for rural employment and infrastructure. India is the second-largest recipient of NDB’s financial support after China.|
|Achievements||Innovated in areas such as lending in local currencies; Holds an AA+ credit rating; Successfully launched bonds, including ‘green bonds’.|
|Issues||Low disbursal of loans despite approving over USD 12 billion; Challenges due to political turmoil and economic crises in member countries; Difficulty in lending to Russian companies due to sanctions and strained China-India relations|
|About GIFT City||Gujarat International Finance Tec-City is a central business district under construction in Gandhinagar district in Gujarat, India. It is India’s first operational greenfield smart city and international financial services centre.|