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New Development Bank seeks to co-finance trade infrastructure projects with India Exim Bank

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SHANGHAI : The Shanghai-headquartered NDB has requested India Exim Bank to identify priority projects, especially ones including technological aspects, on which both can partner. Any prospective partnership will be the first time that Indian export finance authorities work together with China, considered a global competitor in the space.

The New Development Bank (NDB) has reached out to India Exim Bank with an offer to co-finance trade infrastructure across the world. While India remains a stakeholder in the multilateral NDB, any prospective partnership will mark the first time that it partners with China, considered to be a major global rival in all forms of multilateral finance, including export credit, and project exports in particular.

“I invite India Exim Bank to identify some priority projects, in trade enabled infrastructure, which involves both the elements of physical infrastructure as well as of technology,” NDB President Marcos Prado Troyjo said. Troyjo was virtually attending a summit on project exports organized by India Exim Bank on May 5.

Formerly referred to as the BRICS Development Bank, the multilateral development bank was established by five nations namely Brazil, Russia, India, China, and South Africa of the BRICS nation grouping.

Beginning operations in July 2015, the Shanghai-headquartered bank had initially had a slow start. However, it has approved more than $25 billion worth of loans across all the five-member states since then.

Stressing on the importance of financing trade infrastructure projects with technological aspects, Troyjo said manufacturing is globally leading to ‘mindfacturing’ in the export space. Referring to trade in services, knowledge, and digital goods, Troyjo said global flows of these have only accelerated in the post-pandemic scenario.

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