Mains Paper2 | Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests
The following things are important from UPSC perspective:
Prelims: ADB and its Country Partnership Strategy 2018-22
Mains level: ADB will raise annual funding for India to up to $4 billion from next year under its Country Partnership Strategy 2018-22.
- Asian Development Bank (ADB) said it will raise annual funding to India to up to $4 billion from existing $2.7 billion, from next year.
ADB’s Country Partnership Strategy 2018-22
- ADB Country Director in India said the multilateral funding agency has decided to provide loans up to $4 billion on annual basis including non-sovereign or private debt during 2018-22.
- As part of ADB’s Country Partnership Strategy 2018-22, annual sovereign funding will increase from $2 billion to $3 billion while private sector funding would be doubled to $1 billion.
- The other priority pillars include increasing annual funding to low income states and climate change.
The India Programme
- It will focus on boosting economic competitiveness to create more and well paid jobs, improved access to infrastructure and services, and addressing climate change and improving climate resilience over these five years.
- ADB said infrastructure continues to be a major bottleneck.
- Also, it has identified an investment shortfall of $230 billion a year in infrastructure sector.
- ADB highlighted that on Gross Domestic Product (GDP) growth, India is expected to grow at 7 per cent in the current fiscal and will accelerate to 7.4 per cent next fiscal.
- Indian economy expanded by 5.7 per cent in the first quarter of the current fiscal, the lowest in the three years.
- Job creation is a challenge for India.
- India’s poverty reduction record has been quite substantial.
- And rural wages has grown faster than economic growth rate which has led to reduction of agriculture labour.
- Skill development is an area that would help in employability.
India’s Other Investment partners
- Apart from, the Japan International Cooperation Agency, KfW, and the World Bank are India’s other development partners.
- The Asian Infrastructure Investment Bank and the New Development Bank have also joined as new multilateral funding agencies.