Cen­tral Asia and East­ern Europe are Next Fron­tiers of In­vest­ment

FICCI Business Digest - - Contents -

EBRD fo­cuses on the pri­vate sec­tor and pro­vides at least 60 per cent of lend­ing to pri­vate sec­tor. In­dia re­cently be­came the 69th mem­ber of the Lon­don­head­quar­tered EBRD.

In­dia will ben­e­fit from the Euro­pean Bank for Re­con­struc­tion and De­vel­op­ment (EBRD) mem­ber­ship in the Cen­tral Asia and East­ern Euro­pean re­gions, said Sub­hash Chan­dra Garg, Sec­re­tary, Depart­ment of Eco­nomic Af­fairs, Min­istry of Fi­nance, Govern­ment of In­dia. He was speak­ing at the EBRDFICCI Busi­ness Fo­rum on the theme 'Mo­bil­is­ing Pri­vate Sec­tor Fi­nance in the EBRD Re­gion and How In­dian Com­pa­nies can Ben­e­fit'. The fo­rum was jointly or­ga­nized by FICCI and the EBRD with sup­port from EXIM Bank in Mum­bai on 22 June 2018. Garg said we look at Cen­tral Asia and East­ern Europe as the next fron­tier. The EBRD mem­ber­ship will ease out sev­eral prob­lems faced by en­trepreneurs in those re­gions.

EBRD fo­cuses on the pri­vate sec­tor and pro­vides at least 60 per cent of lend­ing to pri­vate sec­tor. In­dia re­cently be­came the 69th mem­ber of the Lon­don-head­quar­tered EBRD.

Garg added that link­ages in terms of trade, in­vest­ment, bank­ing, con­tracts in the re­gion re­main rel­a­tively small and in case we can turn this around, the truest ben­e­fit of EBRD mem­ber­ship will come. In­vest­ment in the re­gion would be a big­ger story than ex­ports. Pro­duc­ing goods and ser­vices thereby in­vest­ing would pro­vide bet­ter op­por­tu­ni­ties to In­dian in­vestors.

Suma Chakrabarti, Pres­i­dent, EBRD, said with In­dia be­com­ing a mem­ber at least 3/5th of the world's pop­u­la­tion is rep­re­sented. As In­dia, has now be­come a part-owner of EBRD, I hope In­dian com­pa­nies will be­come our part­ners in re­al­iz­ing our vi­sion for the world of to­mor­row to­gether.

He added that EBRD's em­pha­sis on mo­bi­liz­ing pri­vate sec­tor fi­nance in the in­ter­est of global pub­lic goods means that the bank now stands cen­tre stage of the world's de­vel­op­ment ar­chi­tec­ture as the in­ter­na­tional com­mu­nity gears up to de­liver Sus­tain­able De­vel­op­ment Goals by 2030.

Ra­jnish Ku­mar, Chair­man, State Bank of In­dia, said that ac­cess to EBRD's mem­ber coun­tries and sec­toral knowl­edge will boost In­dia's in­vest­ment op­por­tu­ni­ties and pave the way for In­dian cor­po­rates to ex­pand their wings. He added that to main­tain the high growth tra­jec­tory, it is nec­es­sary that con­tin­u­ous flow of in­vest­ment is en­sured par­tic­u­larly in the area of in­fra­struc­ture and key so­cial sec­tors. This con­tin­u­ous flow of in­vest­ment should be made avail­able at lower cost for sus­tain­able growth.

David Rasquinha, Man­ag­ing Di­rec­tor, Exim Bank of In­dia, said that the re­la­tion­ship with EBRD will help in tak­ing ex­port fig­ures up in the mem­ber coun­tries of EBRD as there is op­por­tu­nity for In­dian in­vestors.

He­mant Kano­ria, Chair­man & Man­ag­ing Di­rec­tor, SREI In­fra­struc­ture Fi­nance, said that In­dian in­vestors will gain from the ex­pe­ri­ence of EBRD and lo­cal ex­per­tise it of­fers in its coun­tries of op­er­a­tion.

Hi­man­shu Kaji, Co-Chair­man, FICCI Na­tional Com­mit­tee on Cap­i­tal Mar­kets and Ex­ec­u­tive Di­rec­tor & Group COO, Edelweiss Fi­nan­cial Ser­vices Ltd., em­pha­sized that part­ner­ing with EBRD pro­vides op­por­tu­nity for In­dia to build a sus­tain­able fu­ture growth through in­vest­ment in some of these world re­gions.

Nan­dita Par­shad, Man­ag­ing Di­rec­tor, En­ergy and Nat­u­ral Re­sources, EBRD, said that In­dian in­vestors can use EBRD not only as the source of fi­nanc­ing in the re­gion but also as the source of deep lo­cal knowl­edge and pres­ence.

Sub­hash Chan­dra Garg, Sec­re­tary, Depart­ment of Eco­nomic Af­fairs, Min­istry of Fi­nance, Govern­ment of In­dia.

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