India has become the 69th shareholder of the European Bank for Reconstruction and Development (EBRD). This has a lot of potential for Indian companies as it will open up opportunities for them in places such as Central Asia, Turkey and Georgia, said Suma Chakrabarti, President, EBRD. In an interview with BusinessLine , he also explained that the EBRD cannot finance projects in India as it is not a country of operation. Excerpts:

What is the next step for India after becoming a member of the EBRD?

While we didn’t need membership to engage with Indian business till now, the big difference is that we couldn’t depute a lot of resources and people.

We can now systematically engage in discussing opportunities with Indian businesses.

The membership also gives businesses, and the government, access to information such as market analysis, country strategies and reports on the political economy of different countries. This is of great value to businesses for planning long-term investments.

Further, investing with EBRD in these countries makes the investments safer. It provides protection as the countries where we are operating are also our members.

Will EBRD finance projects in India, too?

India will not become a country of operation. It has just become a member. It is up to the Indian government to decide on that and take it up with the other shareholders.

But as a member, there is much that Indian companies can do, especially in regions such as Central Asia and Turkey. These are markets that India has just begun to penetrate.

There are huge opportunities for Indians to go there.

Is there any estimate of these opportunities?

We are so demand-driven that there is no real estimate. But since the creation of EBRD in the early 1990s, we have invested over €120 billion in more than 5,000 projects. This was even before membership.

We are in a very good position financially, and we can expand in countries of operation.

Will the recent clouds of bad loans at Indian banks affect

EBRD’s plans?

It will not affect our relationship. We work with Indian banks for trade finance, and also as potential financiers of projects. We are working with lenders, including State Bank of India and EXIM Bank of India, and it has not impacted our work.

Will you be setting up

an office in India?

We are not planning to set up an office at present. We have offices nearby in Kazhakhstan and in the Gulf.

I, personally, also come to India very often. We plan to bring together our business development push, taking the Gulf and the subcontinent together.

India will have a representative at the EBRD Board, and the bank can also employ Indians after membership.

Related Topics
comment COMMENT NOW