India seeks $2 bn funding from NDB, wants it 'nimble-footed'

However, he cautioned that emerging markets face new challenges from growing protectionism and geopolitical tension.

Government data released in February projected that India's gross domestic product (GDP) will likely grow at 7.1 percent in 2016-17, 0.8 percentage points slower than the previous year's 7.9 percent expansion, but still faster than what many analysts had forecast.

India is seeking United States dollars 2 billion in funding from the New Development Bank for infrastructure projects and wants the multilateral agency to be nimble footed in disbursing faster loans, Finance Minister Arun Jaitley said on Saturday. K. V. Kamath, the chief of the New Development Bank of BRICS countries, in the meet said that seven projects have been done so far by NDB, and it will further consolidate & strengthen operations in coming years.

"The established MDBs (multilateral development banks) are now capital constrained, and with their overemphasis on processes, are unable to meet this financing challenge". The New Development Bank (NDB) is fully operational and will offer loans at cheaper rates, and the govt has sought $2 billion of loans for NDB, he said.

"With this, the NDB will have its first footprint in India".

Jaitley said growth in emerging and developing countries is picking up and news from economies of BRICS countries is "encouraging".

Earlier in the week, Kamath told Sputnik that the NDB this year may approve up to three projects in Russian Federation worth $600-700 million each. "It has also successfully raised money from the market and I am sure will soon make its first disbursement in India", he said. Setting up of an Africa Regional Centre is also under active consideration.

The Bank will complement the efforts of other existing financial institutions to realise the common goal of global growth.

The NDB was created with a vision to support and foster infrastructure and sustainable development initiatives in emerging economies.

  • Leroy Wright