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August 20th Current Affairs

Home / UPSC / Current affairs / UPSC Current Affairs – August 20th

Table of Contents

NTA Reforms Should Have Meaningful Continuity: Supreme Court

Why is this news?

The Supreme Court has stressed that reforms in the National Testing Agency (NTA) must have “meaningful continuity” rather than the government repeatedly creating new committees without properly implementing the recommendations of earlier panels.

The observation comes amid concerns surrounding NEET-UG examination irregularities and paper leaks. The Court has sought information on the steps taken to implement recommendations made earlier for strengthening the examination system.

The key concern of the Court is that institutional reforms should not start from zero whenever a new committee is constituted. Earlier recommendations should be evaluated, retained where useful, and implemented effectively.

What is NTA?

National Testing Agency (NTA) is an autonomous organisation under the Ministry of Education established in 2017.

It conducts several major entrance and eligibility examinations, including:

  • NEET-UG
  • JEE (Main)
  • CUET
  • UGC-NET

Its broad objective is to provide a transparent, efficient and secure examination system.

What is the Supreme Court's concern?

The Court’s concern can be understood through the idea of “institutional memory.”

Institutional Memory

Institutional memory means an organisation retains:

  • lessons learned from previous experiences,
  • recommendations of earlier committees,
  • established procedures,
  • technical expertise, and
  • knowledge of what worked and what failed.

The Supreme Court’s message is essentially:

New committees should build upon previous reforms rather than repeatedly replace them.

This is important because committee formation alone does not constitute reform. The real test is implementation.

Background: Why did NTA reforms become necessary?

The controversy surrounding NEET-UG highlighted concerns regarding:

  • question-paper security,
  • transportation and storage of papers,
  • impersonation,
  • examination-centre management,
  • irregularities in examination conduct,
  • technology and cybersecurity,
  • grievance redressal, and
  • accountability.

Following earlier controversies, the government constituted expert mechanisms to suggest reforms. A major reform process was associated with the K. Radhakrishnan Committee, which examined ways to strengthen examination security and administration.

The present debate is therefore not merely about one examination or one paper leak; it is about the institutional capacity of India’s public examination system.

What does “Committee-Hopping” mean?

Committee-hopping refers to repeatedly establishing new committees to examine the same problem without ensuring that the recommendations of previous committees are implemented.

The problem:

Problem → Committee formed → Recommendations → Poor implementation → New problem → New committee

Instead, the Court wants:

Problem → Committee → Recommendations → Implementation → Monitoring → Evaluation → Continuous improvement

This approach creates long-term institutional reform.

A Palestinian State: Foundation for Regional Peace

Why is this in the news?

The debate over the creation and recognition of a Palestinian State has again gained importance amid continuing efforts to establish a durable political settlement in West Asia. The central argument is that a viable Palestinian state is essential for a sustainable two-state solution and long-term regional peace.

The issue is not simply about diplomatic recognition. A functioning Palestinian state would require territory, effective governance, security, economic viability and political legitimacy. Recent international discussions have also emphasised that recognition should be accompanied by a credible pathway towards a negotiated settlement.

What is the Two-State Solution?

The Two-State Solution proposes the creation of:

  • State of Israel
  • Independent State of Palestine

living side by side in peace and security.

The proposed Palestinian state is generally associated with:

  • West Bank
  • Gaza Strip
  • East Jerusalem as the proposed capital of Palestine in the widely supported framework.

The territorial question remains one of the most difficult issues because of Israeli settlements, borders, Jerusalem, security arrangements and the status of refugees.

Key Components of the Palestinian State Question

  1. Territory

A Palestinian state needs a contiguous and viable territory.

The principal Palestinian territories are:

West Bank + Gaza Strip

However, these territories are geographically separated, creating difficulties for political and economic integration.

  1. Jerusalem

Jerusalem is one of the most sensitive issues.

Both Israelis and Palestinians attach enormous political, historical and religious importance to the city.

Palestinian statehood proposals generally seek East Jerusalem as the capital of Palestine, while Israel considers Jerusalem its capital.

Therefore, the final status of Jerusalem remains a core issue in any peace settlement.

  1. Israeli Settlements

Israeli settlements in the West Bank are a major obstacle to the two-state solution.

The international community, including the UN and many governments, considers settlement activity in occupied territory inconsistent with international law. Israel disputes this legal interpretation.

Expansion of settlements can make the creation of a contiguous Palestinian territory more difficult. Recent reporting has again highlighted settlement expansion in the West Bank and its implications for Palestinian statehood.

  1. Security

Israel argues that any Palestinian state must not become a security threat.

Therefore, questions arise regarding:

  • demilitarisation,
  • border security,
  • control of airspace,
  • security cooperation,
  • armed groups, and
  • Israel’s security concerns.

At the same time, Palestinians seek full sovereignty and freedom from military occupation.

Thus, a sustainable solution must balance Palestinian self-determination with Israeli security.

Palestine and the United Nations

The State of Palestine has the status of a non-member observer State at the UN.

Important milestone:

2012 – UN General Assembly Resolution 67/19

The General Assembly accorded Palestine non-member observer State status.

This was an important diplomatic step towards international recognition.

Palestine has subsequently sought full UN membership, but its admission requires approval through the Security Council, where the veto power of permanent members is significant.

International Recognition

A large majority of UN member states recognise the State of Palestine.

India has long supported Palestinian statehood and the two-state solution.

India’s position supports:

A sovereign, independent, viable and united State of Palestine living alongside Israel in peace and security.

India was also the first non-Arab country to recognise the State of Palestine in 1988.

Why is Palestinian Statehood Important for West Asia?

  1. Regional stability

A political settlement could reduce the possibility of repeated cycles of conflict.

  1. Arab-Israeli relations

Resolution of the Palestinian question is closely connected with broader Arab-Israeli normalisation.

  1. Economic integration

Peace could facilitate greater economic cooperation, connectivity and infrastructure development across West Asia.

  1. Humanitarian concerns

A stable political settlement is necessary for reconstruction and long-term improvement in living conditions in Gaza.

  1. International security

The prolonged conflict has consequences beyond Israel and Palestine, affecting:

  • Red Sea security,
  • global trade routes,
  • energy markets,
  • terrorism and radicalisation,
  • migration and humanitarian crises.

Major Challenges to a Palestinian State

Challenge

Why it matters

Israeli settlements

Fragment Palestinian territory

Gaza–West Bank separation

Makes territorial integration difficult

Status of Jerusalem

Claimed by both sides

Security concerns

Israel seeks security guarantees

Hamas and armed groups

Complicate governance and disarmament

Palestinian political division

Governance has been divided between Palestinian factions

Refugee question

Millions of Palestinians have refugee status

Economic viability

A state needs sustainable economic institutions

Mutual distrust

Repeated conflict has weakened peace negotiations

Recent Palestinian public opinion research indicates growing interest in negotiations after the devastation caused by the Gaza war, but continued disagreements over disarmament, Israeli withdrawal and settlements remain major obstacles.

Surrogate Advertising: When a Legal Product Promotes a Restricted Brand

Why in News?

The issue of surrogate advertising has come into focus after the Maharashtra Food and Drug Administration (FDA) issued notices to actors Shah Rukh Khan, Ajay Devgn and Tiger Shroff over advertisements for Vimal cardamom (elaichi). The regulator alleged that the advertisements could indirectly promote a brand primarily associated with pan masala.

The case is important for UPSC because it connects consumer protection, public health, advertising regulation, ethics and government regulation of harmful products.

What is Surrogate Advertising?

Surrogate advertising is a method through which a company promotes a restricted or prohibited product indirectly by advertising another product using the same or closely associated brand identity.

Simple example:

Pan masala brand → Elaichi advertisement → Same brand name/logo → Consumer remembers the pan masala brand

Similarly:

Liquor brand → Soda / Music CD / Mineral water → Same brand identity → Brand recall

The objective may be to maintain brand visibility and consumer recognition even when direct advertising of the main product is restricted.

Why do companies use surrogate advertising?

Certain products face restrictions on direct advertising because of their potential adverse effects on public health or because of regulatory prohibitions.

Companies therefore attempt to maintain:

  • Brand visibility
  • Brand recall
  • Consumer association
  • Market presence
  • Celebrity endorsement

The legal product may sometimes have a genuine market, but regulators examine whether the advertisement is actually intended to promote the restricted product indirectly.

Current Case: Vimal Elaichi

The Maharashtra FDA argued that the Vimal brand is predominantly associated with pan masala, and that advertising Vimal elaichi could reinforce recognition of the prohibited/restricted product.

The regulator asked the celebrities to:

  • explain their involvement in the advertisement,
  • remove the advertisements from social-media platforms,
  • stop further cooperation with the campaign, and
  • provide details of their endorsement agreements.

Important point

The issue is not simply whether elaichi is a legal product.

The key regulatory question is:

Is the advertisement genuinely selling the legal product, or is the legal product merely being used as a vehicle to promote the restricted product?

Surrogate Advertising vs Genuine Brand Extension

Genuine Brand Extension

Surrogate Advertising

Company genuinely sells the new product

New product may primarily serve as a promotional vehicle

Product has an independent market

Product may have limited/nominal market presence

Advertisement focuses on the legal product

Advertisement may emphasise the prohibited brand identity

Legitimate marketing

Can amount to indirect promotion of restricted goods

Therefore, not every advertisement using an existing brand name automatically becomes surrogate advertising.

Legal and Regulatory Framework in India

  1. Consumer Protection Act, 2019

The Consumer Protection Act, 2019 provides the framework for protecting consumers from misleading advertisements.

The Central Consumer Protection Authority (CCPA) can act against misleading advertisements and impose penalties under the consumer-protection framework.

The 2022 Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements specifically address surrogate advertising.

  1. Cable Television Networks Rules, 1994

The advertising code under the Cable Television Networks Rules restricts advertisements that directly or indirectly promote the production, sale or consumption of:

  • cigarettes,
  • tobacco products,
  • wine,
  • alcohol,
  • liquor and
  • other intoxicants.

This framework became an important regulatory basis for controlling indirect advertising.

  1. Cigarettes and Other Tobacco Products Act, 2003 (COTPA)

COTPA regulates tobacco products in India and places restrictions on their advertising, promotion and sponsorship.

This is particularly relevant because tobacco companies may attempt to use brand extensions and indirect promotional strategies.

  1. Advertising Standards Council of India (ASCI)

ASCI is a self-regulatory organisation for advertising.

It deals with complaints relating to misleading or inappropriate advertisements and has played an important role in regulating surrogate advertisements and brand extensions.

Why is Surrogate Advertising a Governance Issue?

Public Health

Tobacco, pan masala and alcohol-related products can have significant health consequences. Indirect promotion can increase brand familiarity and consumption-related appeal.

Consumer Protection

Consumers should not be deliberately misled about the real purpose of an advertisement.

Celebrity Responsibility

Celebrities have enormous influence, particularly among young people. This raises an ethical question regarding endorsement of products associated with harmful substances.

Regulatory Effectiveness

If direct advertising is prohibited but indirect advertising continues, the effectiveness of the regulatory framework is weakened.

Challenges in Regulating Surrogate Advertising

  1. Genuine product vs proxy product

It can be difficult to establish whether the advertised product genuinely exists as a commercial product or is merely a cover for another product.

2. Brand identity

Companies may use:

  • same logo,
  • colours,
  • slogans,
  • packaging style,
  • celebrity,
  • music,
  • visual themes.

This makes indirect promotion difficult to prove.

3. Digital media

Advertising is no longer limited to television and newspapers.

Social media, influencers, YouTube and digital platforms make monitoring more difficult.

4. Celebrity endorsements

Determining the responsibility of celebrities is complex because they may claim that they endorsed only the legal product.

5. Federal structure

Different authorities may exercise powers under different laws, creating potential overlaps between central and State regulators.

Way Forward

  1. Stronger monitoring

Use technology and data analytics to identify recurring brand identities across advertisements.

2. Clearer legal standards

Regulations should clearly distinguish genuine brand extensions from disguised promotion.

3. Accountability of endorsers

Celebrities and influencers should exercise adequate due diligence before endorsing products.

4. Strengthen digital regulation

The regulatory framework should cover advertisements circulated through social media and influencer marketing.

Public awareness

Consumers should be educated about indirect advertising techniques.

5. Avoid excessive regulation

Regulation should prevent deceptive promotion without unnecessarily restricting legitimate advertising of genuinely legal products.

Before New Taxes, Making Every Rupee Count

Why in News?

The editorial discusses Tamil Nadu’s fiscal position and argues that before imposing new taxes or demanding greater financial support, the State should first improve tax collection, plug revenue leakages and ensure efficient public expenditure.

The central message is:

The solution to fiscal stress is not always higher taxation; better revenue mobilisation and smarter expenditure are equally important.

The article is particularly relevant because Tamil Nadu is a large and economically important State but faces pressure from revenue deficits, debt and rising interest obligations. Recent fiscal assessments have also highlighted concerns about the State’s revenue collection relative to the size of its economy.

What is the core issue?

A State government has two broad sides to its budget:

  1. Revenue side – How does the government earn?

Major sources include:

  • State’s own tax revenue
  • State’s own non-tax revenue
  • Share in Union taxes
  • Grants from the Union Government
  • Other receipts
  1. Expenditure side – How does the government spend?

Major expenditure includes:

  • Salaries
  • Pensions
  • Subsidies
  • Welfare schemes
  • Interest payments
  • Infrastructure and capital expenditure
  • Maintenance and administration

The editorial argues that both sides must be managed efficiently rather than focusing only on increasing taxes.

Tamil Nadu's Revenue Position

Tamil Nadu has a relatively strong and diversified economic base.

Its important own-tax sources include:

  • Commercial taxes/GST
  • Stamp and registration fees
  • State excise
  • Motor vehicle taxes

In the 2025–26 Budget, the State projected its own tax revenue to grow by 14.6%, with commercial taxes forming the largest component.

However, more recent fiscal discussions have highlighted concerns over the tax revenue-to-GSDP ratio and the need to improve collection efficiency.

What does “make every rupee count” mean?

It means improving the quality of government expenditure.

The government should ask:

Is the expenditure necessary?

Avoid unnecessary or duplicative expenditure.

Is the money reaching the intended beneficiary?

Reduce leakages and improve targeting.

Is expenditure creating long-term value?

Investment in infrastructure, education, health and human capital can generate long-term economic benefits.

Are subsidies fiscally sustainable?

Welfare programmes are important, but their recurring financial burden must be assessed.

Revenue Deficit vs Fiscal Deficit

Revenue Deficit

Revenue Deficit = Revenue Expenditure − Revenue Receipts

It means the government does not have enough revenue receipts to meet its revenue expenditure.

In simple terms:

The government is borrowing even to meet part of its day-to-day expenditure.

Tamil Nadu’s 2025–26 Budget estimated a revenue deficit of about ₹41,635 crore, or 1.2% of GSDP.

Fiscal Deficit

Fiscal Deficit = Total Expenditure − Total Receipts excluding borrowings

It represents the government’s overall borrowing requirement.

Tamil Nadu’s 2025–26 fiscal deficit was budgeted at about ₹1.07 lakh crore, or 3% of GSDP.

Easy way to remember

Revenue deficit → Current income vs current expenditure

Fiscal deficit → Overall borrowing requirement

Why is Revenue Deficit a concern?

Suppose the government borrows money to construct:

  1. Industrial infrastructure
  2. Transport infrastructure
  3. Schools
  4. Hospitals

This can potentially generate future economic benefits.

But if borrowing is primarily used for:

  1. Salaries
  2. Pensions
  3. Interest payments
  4. Recurring subsidies

there may be less creation of productive assets.

Therefore, persistent revenue deficits can reduce the government’s fiscal space for capital expenditure.

The Debt Problem

Tamil Nadu’s borrowing requirement is significant.

The 2025–26 Budget projected total borrowings of about ₹1.62 lakh crore, with outstanding borrowing projected at around ₹9.30 lakh crore by March 2026, equivalent to about 26.07% of GSDP.

The important point for UPSC is:

Debt itself is not necessarily bad. The sustainability and utilisation of debt are what matter.

Borrowing for productive investment can support growth, whereas continuously borrowing to finance recurring expenditure can create future fiscal stress.

Where Can Tamil Nadu Improve Revenue Collection?

  1. Plug tax leakages

Better enforcement can increase revenue without necessarily increasing tax rates.

  1. Improve GST compliance

Technology-based monitoring can identify:

  • tax evasion,
  • fake invoices,
  • under-reporting,
  • fraudulent input-tax-credit claims.
  1. Improve property registration

Better valuation and enforcement can improve revenue from stamp duty and registration fees.

  1. Reform State excise administration

Excise is an important source of revenue for many States.

  1. Improve non-tax revenue

The government can improve revenue from:

  • user charges,
  • fees,
  • royalties,
  • government services,
  • public assets.
  1. Reduce leakages in public expenditure

Digitisation, auditing and outcome-based monitoring can improve expenditure efficiency.

Why should the State avoid simply increasing taxes?

Increasing taxes can generate additional revenue, but excessive taxation may:

  • reduce household disposable income,
  • increase the cost of doing business,
  • discourage investment,
  • increase tax avoidance,
  • affect consumption.

Therefore, the better approach is:

Broaden the tax base + improve compliance + reduce leakages + spend efficiently

rather than simply:

Increase tax rates.

Welfare vs Fiscal Prudence

India follows a welfare-state approach. Governments need to spend on:

  • health,
  • education,
  • nutrition,
  • social security,
  • poverty reduction,
  • vulnerable groups.

Therefore, fiscal consolidation should not mean indiscriminate cuts in welfare expenditure.

The objective should be:

Efficient welfare rather than inefficient welfare.

For example, expenditure should be evaluated through:

Beneficiaries → Cost → Outcome → Long-term impact

Capital Expenditure – Why is it important?

Capital expenditure (CapEx) creates assets or improves productive capacity.

Examples:

  • Roads
  • Ports
  • Irrigation
  • Schools
  • Hospitals
  • Public transport
  • Digital infrastructure

Capital expenditure can have a multiplier effect by improving productivity, employment and private investment.

Therefore, excessive growth in recurring expenditure can crowd out productive capital expenditure.

Cooperative Federalism Angle

Tamil Nadu’s fiscal position also connects with Centre–State financial relations.

States receive resources through:

  1. State’s own revenue
  2. Share in Central taxes
  3. Grants-in-aid

In the 2025–26 Tamil Nadu Budget, the State’s own revenues constituted about 75.3% of revenue receipts, with the remainder coming from the Union’s tax devolution and grants.

This highlights an important principle:

Fiscal autonomy

States need sufficient resources to discharge their constitutional and developmental responsibilities.

At the same time:

Fiscal responsibility

States must maintain sustainable debt and expenditure.

Thus, fiscal federalism requires both adequate resources and responsible financial management.

Way Forward

  1. Improve tax administration

Use technology and data analytics to detect evasion.

  1. Broaden the tax base

Bring more economic activity into the formal tax system.

  1. Rationalise subsidies

Protect vulnerable groups while reducing inefficient or poorly targeted expenditure.

  1. Prioritise capital expenditure

Protect investment in infrastructure and human capital.

  1. Outcome-based budgeting

Government departments should be evaluated on outcomes rather than merely expenditure incurred.

  1. Strengthen fiscal transparency

Publish clear information on:

  • contingent liabilities,
  • guarantees,
  • off-budget borrowings,
  • State-owned enterprises.
  1. Strengthen local governments

Better municipal and panchayat finances can improve delivery of public services.

New Development Bank: Strengthening the Financial Voice of the Global South

Why in News?

The New Development Bank (NDB), established by the BRICS countries, is gaining importance as an alternative source of development finance for emerging economies. In 2026, the Bank is focusing on expanding membership, local-currency financing and infrastructure and sustainable-development lending.

A recent development particularly relevant to India is the NDB’s increasing emphasis on financing projects in Indian rupees and strengthening local-currency operations. The Bank has indicated that India is an important market for its future lending strategy.

What is the New Development Bank?

The New Development Bank (NDB) is a multilateral development bank established by BRICS.

It was created by:

  • Brazil
  • Russia
  • India
  • China
  • South Africa

The agreement establishing the NDB was signed at the 6th BRICS Summit in Fortaleza, Brazil, in 2014, and the Bank began operations in 2015.

Headquarters

📍 Shanghai, China

The Bank also has regional offices, including in Johannesburg and São Paulo.

Main Objective of NDB

The primary objective is to mobilise resources for infrastructure and sustainable development projects in:

  • BRICS countries
  • Emerging markets
  • Developing countries

The Bank aims to complement existing institutions such as the World Bank and regional development banks, rather than simply replace them.

Major areas financed by NDB

  • Transport infrastructure
  • Renewable energy
  • Water and sanitation
  • Sustainable urban development
  • Affordable housing
  • Environmental sustainability
  • Digital infrastructure
  • Social infrastructure

NDB’s portfolio includes projects in areas such as transport, clean energy, water infrastructure and housing.

Why is NDB Important for India?

1.Alternative source of development finance

India requires enormous amounts of financing for:

  • infrastructure,
  • renewable energy,
  • urbanisation,
  • transport,
  • water management and
  • digital infrastructure.

NDB provides another source of long-term development finance.

2. Local-Currency Financing

Traditionally, international development loans are often denominated in currencies such as the US dollar.

If a country borrows in dollars but earns revenue in its domestic currency, depreciation of its currency can increase the effective burden of repayment.

Example:

Dollar borrowing → Rupee depreciates → Cost of repayment in rupees increases

Local-currency financing can reduce this foreign-exchange risk.

NDB has been discussing stronger INR financing and local-currency operations in India.

3. Reducing Excessive Dependence on Western Financial Institutions

The global development-finance architecture has historically been dominated by institutions such as:

  • World Bank
  • IMF
  • Regional development banks

NDB provides greater representation to emerging and developing economies.

However, it should not be understood simply as an anti-Western institution. Its objective is primarily to expand development-finance options and strengthen the voice of emerging economies.

4. Supporting Sustainable Development

NDB places considerable emphasis on:

  • climate-friendly infrastructure,
  • renewable energy,
  • sustainable urbanisation,
  • environmental protection,
  • water management.

This aligns with the UN Sustainable Development Goals (SDGs).

NDB and BRICS – Important Distinction

BRICS

→ A political and economic cooperation grouping.

NDB

→ A multilateral development bank created by BRICS.

Therefore:

NDB is an institution associated with BRICS, but NDB and BRICS are not the same thing.

Also, NDB membership and BRICS membership are not identical. The Bank can have members beyond the BRICS grouping.

NDB vs World Bank

Feature

NDB

World Bank

Established

2014 agreement; operations from 2015

1944

Headquarters

Shanghai

Washington, D.C.

Founding initiative

BRICS

Bretton Woods

Main focus

Infrastructure & sustainable development

Development and poverty reduction

Major beneficiaries

Emerging & developing economies

Developing countries globally

Governance

Strong role for founding BRICS countries

Voting structure reflects capital contributions

Currency focus

Increasing local-currency financing

Traditionally significant dollar-based financing

 

Recent Institutional Developments – 2026

The NDB’s 11th Annual Meeting was held in Moscow in May 2026.

Important decisions included:

  • guidance on membership expansion,
  • preparation of the General Strategy for 2027–2031,
  • India being selected to host the 12th Annual Meeting in 2027,
  • India’s Finance Minister Nirmala Sitharaman being elected as the next Chairperson of the NDB Board of Governors.

This is significant for India because it gives New Delhi an opportunity to influence the Bank’s future priorities.

NDB’s Expanding Membership

The NDB has expanded beyond its original five founding members.

Countries that have joined or been admitted include countries such as:

  • Bangladesh
  • Egypt
  • United Arab Emirates
  • Algeria
  • Uzbekistan

Membership expansion is intended to increase the Bank’s geographical reach and strengthen its role in financing the Global South.

Important:

BRICS expansion ≠ NDB expansion

A country joining BRICS does not automatically mean that it becomes an NDB member.

Why Local-Currency Financing Matters for India

This connects NDB with the broader debate on de-dollarisation.

Traditional model:

Borrow in US dollars → repay in dollars

Potential problems:

  • Exchange-rate risk
  • Higher repayment burden after domestic currency depreciation
  • Dependence on international dollar liquidity

Local-currency model:

Borrow in rupees → repay in rupees

Advantages:

  • Lower currency mismatch
  • Reduced foreign-exchange risk
  • Development of domestic financial markets
  • Greater monetary and financial resilience

However, local-currency financing does not mean that NDB’s primary objective is to eliminate the US dollar.

Challenges Before NDB

  1. Limited financial scale

NDB is still much smaller than the World Bank and other established MDBs.

  1. Creditworthiness and funding costs

The Bank needs strong financial credibility to raise funds at competitive rates.

  1. Geopolitical differences

BRICS countries have different political and economic interests.

  1. Expansion vs institutional capacity

Rapid membership expansion must be accompanied by adequate:

  • capital,
  • staff,
  • risk-management systems,
  • project-evaluation capacity.
  1. Balancing development and sustainability

Large infrastructure projects must also meet environmental and social safeguards.

India's Strategic Importance

For India, NDB can support:

Infrastructure

Metro rail, transport and urban infrastructure.

Green transition

Renewable energy and climate-resilient infrastructure.

Urbanisation

Sustainable cities and municipal services.

Financial diversification

Access to alternative sources of development finance.

Global South leadership

India can use NDB to promote greater representation of developing countries in global financial governance.

NDB’s current project portfolio includes Indian projects such as Lucknow Metro Rail Phase 1B and affordable housing financing.

 

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