The Government of India and the New Development Bank (NDB) have signed a loan agreement worth $1,000 million for ‘supporting India’s economic recovery from COVID-19’. The loan has a tenor of 30 years, including a 5-year grace period. The programme will support Indian Government in mitigating the adverse economic impact of COVID-19 pandemic and enable economic recovery in the rural areas.
Under the agreement, Shanghai-based NDB will lend financial support for:
- The loan will support expenditures on rural infrastructure related to natural resource management (NRM) and rural employment generation under Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS).
- The programme will support the government in mitigating the adverse economic impact of Covid-19 pandemic and enable economic recovery in the rural areas through natural resource management works which will facilitate economic activity and employment generation to stimulate rural demand.
- The programme will improve the livelihood of rural poor along with providing income opportunities to migrant workers who returned home due to job loss caused by Covid-19 pandemic.
Important takeaways for all competitive exams:
- New Development Bank Headquarters location: Shanghai, China.
- New Development Bank President: Marcos Prado Troyjo.
- New Development Bank Founder: BRICS.
- New Development Bank Founded: 15 July 2014.