It is widely anticipated that a new development finance institution would be announced by India’s Finance Minister, Nirmala Sitharaman, as part of her budget proposals to be presented on February 1, 2021. The Union Budget 2021 offers the central government an extraordinary opportunity to address India’s economic and financial challenges amidst the economic slump triggered by the COVID-19 pandemic.

The upcoming budget has the potential to lay down a roadmap for a people-centered recovery by providing immediate relief measures to…