Short Article

08-07-2022 | 15:47 PM

Partnership for Global Infrastructure and Investment (PGII)

• G7 countries recently launched the Partnership for Global Infrastructure and Investment (PGII).
• The Partnership for Global Infrastructure and Investment (PGII) was unveiled in Elmau, Germany during the G7 Summit.

About PGII

• This is an ambitious plan unveiled by US President Joe Biden and other G7 leaders to mobilize USD 600 billion in funding by 2027 to deliver transparent and game-changing infrastructure projects in developing countries like India.
• The US aims to mobilize $200 billion for PGII over the next 5 years through grants, Federal financing, and leveraging private sector investments.

What’s there for India?

• U.S. International Development Finance Corporation (DFC) will invest up to USD 30 million in Omnivore Agritech and Climate Sustainability Fund.
• The Fund seeks to invest in companies that increase food security and promote both climate resilience and climate adaptation in India, as well as improve the profitability and agricultural productivity of smallholder farms. 

Status of global infrastructure

• Internationally, infrastructure has long been underfunded, with over $40 trillion in estimated need in the developing world.
• Many low- and middle-income countries lack adequate access to high-quality financing that meets their long-term infrastructure investment needs.

How will the fund be provided?

• Grants
• Federal Funds
• Private Investments

How will the initiative benefit?

The initiative will be geared towards:

• Tackling climate change
• Improving global health
• Achieving gender equity
• Building digital infrastructure.]

About G7 countries

• The G7 is an informal forum of leading industrialized nations as per IMF, which include Canada, France, Germany, Italy, Japan, the United Kingdom and the United States. 
• Representatives of the European Union are always present at the annual meeting of the heads of state and government of the G7. 
• The G7, originally G8 (along with Russia), was set up in 1975 as an informal forum bringing together the leaders of the world’s leading industrial nations.
• After annexation of Crimea by Russia in 2014, Russia was excluded from the grouping.