ADB Governors’ Seminar on “Cooperation for a Resilient Future”

Indian Finance and Corporate Affairs Minister, who is the Asian Development Bank’s (ADB) Governor for India, recently participated in the Governors’ Seminar on “Cooperation for a Resilient Future”, held as part of ADB’s annual meeting 2021.

  • India appreciated the ADB for providing timely financial support for Covid and non-Covid projects.

About ADB

  • ADB is a regional development bank established on 19th December 1966.
  • Headquartered in Manila, Philippines, ADB now has 68 members, 49 from within Asia.

Shareholders

  • As of 31 December 2019, ADB’s five largest shareholders are Japan and the United States (each with 15.6% of total shares), the People’s Republic of China (6.4%), India (6.3%), and Australia (5.8%).

Functions

  • It is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration.
  • This is carried out through investments – in the form of loans, grants and information sharing – in infrastructure, health care services, financial and public administration systems, helping nations prepare for the impact of climate change or better manage their natural resources, as well as other areas.

India and ADB

  • India was a founding member of the Asian Development Bank (ADB) in 1966. Today, the country is ADB’s fourth-largest shareholder and its top borrower since 2010.
  • India started availing of ADB’s assistance in 1986.
  • The aim is of Asian Development Bank is to support India in the following fields:
    • Industrial competitiveness
    • Jobs creation
    • Growth acceleration of low-income states
    • Environmental and climate change challenges

Recent development between ADB & India

  • ADB and India have signed a loan of $206 million to strengthen urban services in 5 Tamil Nadu cities.
  • ADB has listed its 10-year masala bonds worth Rs 850 crore on the global debt listing platform of India INX.
  • It had prepared a Conceptual Development Plan (CDP) for Vizag-Chennai Industrial Corridor (VCIC).
  • It has offered to provide USD 4 million to member countries to contain coronavirus outbreaks.
  • It will provide Rs 100 crore loan to hospital chain Medanta for healthcare services and medical equipment to fight the COVID-19 pandemic. The project will support the purchase of personal protective equipment, basic hygiene products, and patient care equipment such as ventilators and beds.

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