At BRICS, India Must Leverage the New Development Bank for Financial Inclusion
As the 18th BRICS Summit concluded in New Delhi, analysts emphasize that India should leverage BRICS to maximize its global potential without strengthening Beijing's strategic position, primarily by empowering the New Development Bank (NDB). Established in 2015, the NDB serves as a crucial tool for infrastructure and sustainable development financing, offering a distinct preference for local-currency lending. To overcome slow disbursement rates and capital constraints caused by sanctions on founders like Russia, India must push for capital expansion, resolve asset bottlenecks, and successfully launch long-delayed rupee bonds.
Key Points
- The New Development Bank (NDB) remains one of the most tangible economic instruments of the BRICS grouping.
- The NDB promotes local-currency lending, such as Panda bonds, to reduce foreign exchange volatility and dollar reliance.
- Stagnant asset growth and slow loan disbursement rates continue to restrict the NDB's lending capacity compared to counterparts like the AIIB.
- India should push for resolving capital constraints and launching long-delayed rupee bond issuances to bolster development finance.
Exam Facts
- NDB approved projects: 139 projects worth about $43 billion
- AIIB approved projects: 350 projects worth about $69 billion
- BRICS founding GDP contribution: 20% of global GDP, holding 11% IMF voting share
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