The New Development Bank (NDB) is a multilateral development bank set up by the BRICS countries: Brazil, Russia, India, China and South Africa. It funds infrastructure and sustainable development projects. Here is how it works.
History
The idea of a BRICS development bank was discussed at the BRICS summit in New Delhi in 2012. The agreement to set up the bank was signed at the BRICS summit in Fortaleza, Brazil, in July 2014. The bank began operations in 2015 and approved its first loans in 2016.
Its headquarters is in Shanghai, China. It has a regional office in India, in addition to offices in other founding countries.
Leadership
India’s KV Kamath, a veteran banker, was the first President of the NDB from 2015 to 2020. The presidency rotates among founding members. Former Brazilian President Dilma Rousseff became President in 2023.
Shareholding
The five founding members hold equal shares, so no single founder has veto power. This is different from the World Bank and IMF, where voting depends on economic size.
Also Read: What Is BRICS? Members, New Development Bank and India’s Role as Chair in 2026 | What Is the Asian Development Bank? How ADB Works, Who Owns It and Its Role in India
New members
The NDB has admitted new members, including Bangladesh, the United Arab Emirates, Egypt and Algeria. Other countries have applied or are in the process of joining.
What it funds
NDB lends to governments and companies in member countries for:
- Clean energy and energy efficiency
- Transport infrastructure such as roads, railways and metros
- Water supply and sanitation
- Urban development
- Social infrastructure
- Digital infrastructure
It also tries to lend in local currencies of member countries to reduce dependence on the US dollar.
NDB and India
India is a founding member and one of the largest borrowers. NDB has funded Indian projects such as:
- Metro rail projects in cities including Mumbai and Indore
- Rural roads and state highways
- Renewable energy and transmission
- Water supply and irrigation
NDB and other banks
NDB is separate from the Asian Infrastructure Investment Bank and often co finances projects with other lenders. Along with the BRICS Contingent Reserve Arrangement, it was meant to give developing countries alternatives to older lenders.
Bottom line
The New Development Bank gives BRICS and other developing countries a shared lender for infrastructure, with India playing a key role as a founder and borrower.
Source / स्रोत: New Development Bank, Department of Economic Affairs
