×

UPSC Courses

DNA banner

DAILY NEWS ANALYSIS

  • 16 November, 2021

  • 5 Min Read

AIIB and India

GS-Paper-2 International organisation (PT-MAINS)

India and AIIB:

  • India was among the AIIB’s 57 founding members in 2016.
  • It is also its second-largest shareholder (with 7.62% voting shares) after China (26.06%).
  • It has received USD 4.35 billion from the Bank.
  • This is the highest of any country, with the bank so far approving loans of USD 19.6 billion to support 87 projects in 24 countries. Turkey is second with USD 1.95 billion.
  • AIIB has approved financing projects in India in a host of sectors like energy, transport and water including the Bangalore metro rail project (USD 335 million), Gujarat rural roads project (USD 329 million) and Phase 3 of the Mumbai urban transport project (USD 500 million).
  • In a recent virtual meeting, India said that it expects AIIB to introduce new financing instruments, provide financing for social infrastructure and to integrate the development of climate resilient and sustainable energy access infrastructure into AIIB’s recovery response to the Covid-19 crisis.
  • This implies that India is unlikely to alter its engagement with the China-led Asian Infrastructure Investment Bank (AIIB), despite a host of offensive measures announced recently to reduce its trade and investment links with China.

Chinese Angle:

  • In June 2020, AIIB approved USD 500 million for Covid-19 Emergency Response Fund and Health Systems Preparedness Project and another USD 750 million for Covid-19 Active Response and Expenditure Support, in a co-financing arrangement with the Asian Development Bank (ADB).
  • USD 750 million loan was approved two days after the clash in Galwan Valley in Ladakh along the India-China border.
  • It has supported several projects under the Belt and Road Initiative (BRI) framework, but is not formally linked to the plan.
  • India has concerns over the China-Pakistan Economic Corridor - a part of the BRI.

Asian Infrastructure Investment Bank

  • The AIIB is a multilateral development bank with a mission to improve social and economic outcomes in Asia.
  • Headquartered in Beijing (China), it began operations in January 2016 and has now grown to 103 approved members worldwide.
  • India should continue to engage with AIIB as it will be able to access resources for the financing of national and cross-border infrastructure projects from the Bank. AIIB is also significant as the World Bank is continued to be dominated by the USA while Japan has more influence over Asian Development Bank (ADB). Further, India needs to ensure that its own interests are served by its membership very explicitly. It should make sure that AIIB doesn’t end up becoming a tool of Chinese geopolitical agenda.

Source: TH


Group of Four (G4) on UNSC Reform

Group of Four (G4) on UNSC Reform Under the auspices of The Group of Four (G4), the External Affairs Minister of India met with his counterparts from Brazil, Germany, and Japan. Details about the news G4 discussed concerns pertaining to the UN Security Council reform during a meeting that took place alongside the 77th session of the

Draft Indian Telecommunication Bill 2022

Draft Indian Telecommunication Bill 2022 To control Internet-based OTT (Over-The-Top) telecom services, the Department of Telecommunications (DoT) recently announced the draught Indian Telecommunications 2022 Bill. ?????????????? What are the Draft Bill's Main Points? The Indian Telegraph Act, 1885, Indian Wireless Telegraph

Fly Ash

Fly Ash The National Green Tribunal (NGT) has emphasised the urgent need for Chhattisgarh to increase the use and disposal of fly ash. ??????? About 15 state, national, and privately owned electricity generating units are concentrated in Korba, Chhattisgarh, makes the situation much more dire. What is Fly Ash? Burning

Breakthrough Agenda Report 2022

Breakthrough Agenda Report 2022 The UN Climate Change High-Level Champions, the International Energy Agency (IEA), and the International Renewable Energy Agency (IRENA) have launched The Breakthrough Agenda Report 2022, which focuses on international cooperation to accelerate greenhouse gas emission reductions. What are the Report

International Year of Millets 2023

International Year of Millets 2023 In preparation for the International Year of Millets in 2023, the Ministry of Agriculture and Farmers Welfare has planned a number of pre-launch activities and initiatives to raise awareness and encourage involvement in the nation about the illustrious but long-forgotten golden grains. Numerous initiatives

Toppers

Search By Date

Newsletter Subscription
SMS Alerts