Boosting Economic Recovery: India, NDB Sign $ 1 Billion Loan Agreement

The central government and the New Development Bank (NDB) signed a loan agreement for a $ 1 billion loan intended to “support India’s economic recovery after Covid-19”.

The loan will support rural infrastructure spending related to natural resource management (NRM) and rural job creation under Mahatma Gandhi’s National Rural Employment Guarantee Program (MGNREGS).

NDB’s $ 1 billion loan has a 30-year term, including a 5-year grace period.

The program will help the government mitigate the negative economic impact of the Covid-19 pandemic and enable economic recovery in rural areas through natural resource management works that will facilitate economic activity and job creation for stimulate rural demand.

The program proposes the creation of sustainable rural infrastructure linked to NRM and the creation of employment opportunities for the rural poor, in particular migrant workers who have returned from urban areas and lost their livelihoods due to the Covid-19 pandemic, according to an official statement.

The agreement was signed by Baldeo Purushartha, Deputy Secretary, Department of Economic Affairs, Ministry of Finance, and Xian Zhu, Vice President, Director of Operations, NDB.

Jobs

Purushartha said the program will improve the livelihoods of the rural poor while providing income opportunities for migrant workers who have returned home due to job loss caused by the Covid-19 pandemic.

Xian Zhu said the program will support government efforts to mitigate the negative economic impact of the Covid-19 pandemic and enable economic recovery in rural areas through NRM works and job creation. Funding under the NDB’s accelerated emergency response to Covid-19 policy will help preserve rural incomes and support rural spending, resulting in increased demand that promotes economic recovery.

The NDB was created on the basis of the intergovernmental agreement between the BRICS countries (Brazil, Russian Federation, India, China and South Africa) signed on July 15, 2014. The bank aims to mobilize resources for infrastructure and sustainable development. projects in the BRICS and other emerging market economies and developing countries.


Source link

Comments are closed.