31 July, 2020
5 Min Read
AIIB and India
GS-Paper-2 International organisation (PT-MAINS)
Jin Liqun has been re-elected as the President of the China-based Asian Infrastructure Investment Bank (AIIB) for a second five-year term.
India and AIIB:
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
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.
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