RBI, green finance and the blue planet: How are banks placed in all this?

The central bank's report seeks to nudge banks and financial institutions to catalyse risk mitigation from climate change

Sri Lanka
Sri Lanka
Kanika Datta Delhi
3 min read Last Updated : May 15 2023 | 4:59 PM IST
Last week, BNP Paribas said it will no longer bankroll new oil and gas fields, and stick to its target of an 80 per cent cut-back in such exposures by 2030. This must be seen in the context of the “Green Deal”, the flight path for the European Union (EU) to become climate-neutral by 2050; and the EU Commission’s announcement of €1 trillion in investments to pay for this journey. While no similar commitment has been made by Indian authorities, the ministry of environment, forest and climate change has put the cumulative expenditure for adapting to climate change at Rs 85.6 trillion (at 2011-12 prices) by 2030. The stakes are getting to be bigger.
The Reserve Bank of India (RBI) has aptly themed its latest Report on Currency and Finance (C&F: FY23), “Towards a Greener Cleaner India”. It has highlighted the impact of climate-change induced risks to macro-financial prospects, and the need for dedicated research to draw up a range.

Federation of Indian Export Organisations (FIEO) Director General Ajay Sahai said the Netherlands has emerged as a hub for Europe with efficient port and connectivity with the EU through road, railways and waterways.

In the calendar year, India's exports to the country increased to $18.1 billion in 2022 from $5.5 billion in 2017.

 

According to economic think tank GTRI (Global Trade Research Initiative), ATF (aviation turbine fuel) and diesel were the key petroleum products exported from India to that country.

Telecom equipment and smartphones with a value of over $1 billion were the largest electronic items, it said.

 

Mumbai-based exporter and Chairman of Technocraft Industries Sharad Kumar Saraf said the trend would continue in the future also.

Saraf said that the Netherlands is a gateway to Europe as their ports are very efficient hence cheaper than other European ports for shipping operations.

 

India and the Netherlands established diplomatic relations in 1947. Since then, the two countries have developed strong political, economic and commercial relations.

In 2022-23, the bilateral trade between the two countries increased to $24 billion as against $17 billion in 2021-22 and about $10 billion in 2020-21.

 

The Netherlands is among top trading partners of India in Europe, after Germany, Switzerland, the UK and Belgium. It is also a major investor in India. During April-September this fiscal, India received $1.76 billion in foreign direct investment from the Netherlands. It was $4.6 billion in 2021-22.

There are over 200 Dutch companies present in India, including Philips, Akzo Nobel, DSM, KLM and Rabobank. Similarly, there are over 200 Indian companies operating in the Netherlands, including all the major IT firms such as TCS, HCL, Wipro, Infosys, Tech Mahindra as well as Sun Pharmaceuticals and Tata Steel.

 

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)


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Topics :NetherlandsIndia trade

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First Published: May 15 2023 | 4:59 PM IST

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