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New Development Bank is a multilateral bank founded by the BRICS Nations in the year 2014 at the 6th BRICS Summit in Fortaleza, Brazil. It is popularly known as NDB or BRICS Development Bank. It is known to all that India is part of BRICS, so this financial institution became important for the growth of India.
The New Development Bank is an important topic directly related to the Indian economy subsection of UPSC Mains Exam. Also, some multiple-choice questions related to the BRICS development bank will be asked in the UPSC Prelims Exam.
Table of Contents
What is New Development Bank?
The BRICS countries, namely, Brazil, Russia, India, China and South Africa formed a multilateral financial institution named New Development Bank. The requirement of such a bank was raised by India in 2012 during the 4th BRICS summit in New Delhi. Later, in the 6th BRICS meeting in 2014, this financial institution was formed.
Recently, Bangladesh, UAE and Egypt became new members of the New Development Bank. Also, Uruguay is a proposed member of this institution. The New Development Bank recently launched its Indian regional office in Gujarat.
Facts About BRICS Development Bank
- New Development Bank was established in July 2014.
- The headquarters of NDB is in Shanghai, China.
- NDB received observer status in the United Nations General Assembly in 2018.
- There are 5 founding member countries and eight member nations of of NDB.
- Bangladesh, UAE, and Egypt are members.
Objectives of New Development Bank
- Promoting the development of member nations including economic growth, job creation and more.
- Promoting competitiveness and constructing a knowledge-sharing platform for member nations.
- To develop a global network of collaborations with other multilateral development banks and national development banks.
- To promote infrastructure and sustainable development initiatives in member nations that have a major development impact.
Importance of New Development Bank for India
The New Development Bank is funding multiple development projects in India such as Mumbai Metro Rail, Delhi Ghaziabad Meerut’s Regional Rapid Transit System, and many other Renewable Energy projects. Likewise other founding member countries, India holds 18.98% shares in New Development Bank.
Recent Projects Funded by NDB in India
- Kohima Town Water Supply Augmentation Project
- Bihar Rural Road (Phase II)
- Corridor 4 of Phase II of Chennai Metro Rail Project
- Sustainable Low-carbon Rail Infrastructure Program
- Assam Bridge-II (Palasbari) Project
FAQs
New Development Bank is an international financial institution formed by Brazil, Russia, India, China and South Africa in the year 2014.
Brazil, Russia, India, China and South Africa are founding members and Bangladesh, UAE and Egypt became new members of the New Development Bank.
Dilma Rousseff is the new President of the New Development Bank (NDB).
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