New Delhi: The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved India`s membership for the European Bank for Reconstruction and Development (EBRD), a move which will help it obtain funding in various areas including services and manufacturing.


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The membership will increase the scope of cooperation between India and the multilateral institution through co- financing opportunities in manufacturing, services, information technology and energy.


It will also help enhance the competitive strength of Indian firms and provide an greater access to international markets in terms of business opportunities, procurement activities and consultancy assignments.


The minimum initial investment towards the membership of EBRD will be approximately 1 million euros. However, this assumption is based on India deciding to buy the minimum number of shares (100) required for obtaining the membership.


EBRD`s core operations pertain to private sector development in their countries of operation. The membership would help India leverage the technical assistance and sectoral knowledge of the bank for the benefit of development of private sector.


With the country`s impressive economic growth over the years and enhanced international political profile, it was considered appropriate that India should expand its presence on the global developmental landscape beyond its association with the Multilateral Development Banks (MDBs) such as the World Bank, Asian Development Bank and African Development Bank.


The decision to join the Asian Infrastructure Investment Bank (AIIB) and the New Development Bank (NDB) was taken earlier against this backdrop.