G20 Nations to Create Global Infrastructure Hub
The leaders of the G20 group of nations that comprise of rich and developing countries like India have decided to set up a Global Infrastructure Hub that is aimed at reducing investment barriers, thereby improving information sharing and channelizing of funds into the sector.
Benefits of Creating the Hub: The G20 leaders have decided on creating a Global Infrastructure Hub that will be located in Sydney. The B20 is a similar group of the comprises of the business leaders of the G20 nations who have given an estimated value of 2 trillion dollars’ worth global infrastructure that would be unlocked by the creation of this Hub.
- It will help in reducing barriers created in investment procedures.
- It will also serve as an information sharing centre offering a knowledge sharing platform and network between the governments of the G20 nation.
- The network will also be accessible to the private sector, development banks and other international organisations.
- A communiqué released from the end of the two day meeting conducted by the G20 said that the Hub will foster collaboration among these groups and improve the functioning and financing of infrastructure markets.
Upcoming Plans: The G20 has set a four year mandate for creating the Hub. Australia, where the G20 Presidency is conducted stated after the meeting that -
- The hub will function at an international level and aid in improving countries in the general investment sectors.
- Grow project pipelines
- Help match investors with projects
Countries Participating: UK, China, Saudi Arabia, Korea, Mexico, New Zealand and Singapore are reported to have already given their financial commitment in favour of developing this Hub. However, the major contribution will be made by the Australian Government apart from other contributions made by G20 members, non-members, international organisations, private sector, non-government stakeholders etc.
The G20 in is meeting stressed upon the need for global investment in infrastructure which is necessary to boost growth and creation of newer job opportunities. The Hub shall be working with multilateral agencies that will encourage national banks to provide additional lending to the sector.
The Indian infrastructure sector is expected to require an estimated $1 trillion as per the 12th Plan period that will be ending in 2017. Half of this investment is expected to come from the private sector.
Source: Business Standard
