Weekly Current Affairs

‘India preparing projects worth $2-3 billion for funding by AIIB’ [Infrastructure]

  • India is identifying projects worth $2-3 billion that could be funded by the Asian Infrastructure Investment Bank (AIIB).
  • India is in full support for the China-led lender by calling upon it to open a regional office in New Delhi — a move that could help support South Asia’s burgeoning demand for infrastructure.
  • The projects in India, which were being identified, were in the areas of urban development, including smart cities, urban transport, energy, inland waterways and water supply.
  • AIIB presents a much needed additional financing window dedicated to infrastructure projects and meeting the financing gap that may be beyond the capacity of the individual countries and the existing Multilateral Development Banks (MDBs).
  • Beijing-based AIIB is headed by former Assistant Chinese Finance Minister, Jin Liqun, while India’s DJ Pandian is its Vice President and Chief Investment Officer .
  • India had continued to maintain a high growth rate of 7.6 per cent in 2015-16, despite the overall “very modest” recovery of the global economy.
  • The future of both markets and currencies will really depend not on the external shocks but on the strength of the real economy.