India Becomes Largest Recipient of AIIB Financing

Speak­ing at the Asian Infra­struc­ture Invest­ment Bank’s third annu­al meet­ing in Mum­bai on June 25, Indi­an Eco­nom­ic Affairs Sec­re­tary Sub­hash Chan­dra Garg announced that India has become the largest bor­row­er from AIIB. The bank’s fund­ing for India was bol­stered the same day, when AIIB announced the approval of a $200 mil­lion equi­ty invest­ment in India’s Nation­al Invest­ment and Infra­struc­ture Fund (NIIF).  The NIIF works with investors, both domes­tic and inter­na­tion­al, that are inter­est­ed in invest­ing in Indi­an infra­struc­ture projects.  The invest­ment is phase one of a two-phase process. NIIF was set up in 2015 as an invest­ment vehi­cle to finance com­mer­cial­ly viable infra­struc­ture projects.

The NIIF deal brings AIIB financ­ing in India to $1.21 bil­lion, out of total glob­al com­mit­ments of $4.39 bil­lion.  Respond­ing to ques­tions regard­ing the AIIB being used to pro­mote the Belt and Road Ini­tia­tive, Garg said, “With 86 mem­ber coun­tries, I don’t think any­body should con­sid­er this belongs to any par­tic­u­lar coun­try.  In a way it might be as Chi­nese as the World Bank is American….We have not seen any projects specif­i­cal­ly fund­ed on BRI (Belt and Road ini­tia­tive), where we have an issue, so far.”