Governors’ Statements

6th Annual Meeting of Board of Governors (Videoconference)

Tuesday 30th March 2021

4:30-6:30 PM (IST)

Statement By Mrs. Nirmala Sitharaman, Governor for India

OPENING PLENARY SESSION

 

  1. Honorable Governors, President Marcos Troyjo, Senior Management and Staffs of NDB, Ladies and Gentlemen

 

  1. The COVID-19 pandemic is not only threatening to upend the socio-economic set up, but is also creating additional challenges, which countries around the globe will have to address to engineer a successful recovery and re-ignite growth.

 

  1. The IMF’s latest World Economic Outlook has stated that amid exceptional uncertainty, the global economy is projected to grow 5.5 percent in 2021 and 4.2 percent in 2022. India is projected to grow 6.8 percent in 2022. India’s quick efforts to limit the impact of the pandemic and to undertake massive vaccination drives have resulted in a “V shape recovery”.

 

  1. India has been able to manage to flatten the epidemiological curve through various measures including prompt roll-out of Covid-19 vaccine, while we may have to contend with another wave. The world’s largest vaccine drive by India is under way in the country and is moving forward at a rapid pace and as of today, a total of more than 61.1 million vaccine doses have been administered in India. I am happy to inform that, as of today, India supplied 63.9 million made-in-India COVID vaccine doses to 80 countries including 10.4 million vaccine doses as grant.

 

  1. Infrastructure investment have a positive spillover effects on the economic health of a country and the COVID-19 pandemic has accentuated the need to improve infrastructure including health sector. Encouraging innovation in the design, sourcing, and timely delivery of infrastructure projects are critical.

 

  1. Multilateral Development Banks (MDBs) including NDB played an important role in countercyclical lending in times of crisis with emphasis on recovery by shifting from long-term investment lending to faster-disbursing and policy-based loans and through portfolio and sectoral changes.

 

  1. As we know, increasing participation from private investors in strategic sectors is essential to meet the Sustainable Development Goals (SDGs). NDB has to play an important role in crowding in private capital in member countries.

 

  1. NDB should develop new ways of scaling up resource mobilization including exploring co-financing opportunities with other MDBs and explore more innovative financing structures to support new lending.

 

  1. NDB should also facilitate through its Regional Offices to develop a pipeline of bankable projects, a need that is only further deepened by the COVID-19 pandemic and the global economic slowdown. Promoting environmental and social safeguards to enhance the sustainability of infrastructure is also critical

 

  1. I am happy to inform you that soon India is going to set up a new Development Finance Institution with initial paid-up capital of around USD 3 billion. It will also leverage around USD 41.36 billion from the markets in a few years with a lending target of USD 69 billion in next three years. I look forward to NDB’s partnership to develop synergistic relationships with these institutions that share its development priorities to achieve greater results.

 

  1. To conclude, I am confident that, together we shall overcome the current challenging times. I take this opportunity to assure India’s continued support to NDB and all member countries to bring back prosperity in an inclusive and sustainable manner.

 

Thank you