India urges AIIB to increase lending tenfold to $40 billion by 2020

Canada's Finance Minister Bill Morneau attends a news conference at the headquarters of the Asian Infrastructure Investment Bank (AIIB) in Beijing, China, August 31, 2016. REUTERS/Thomas Peter

Vastavam web: The China-backed Asian Infrastructure Investment Bank (AIIB) should increase lending tenfold within two years to help the region meet its investment needs faster, Prime Minister Narendra Modi said at the third annual meeting of the multilateral lender in Mumbai.To date the AIIB’s loan portfolio totals $4 billion, but by 2020 the figure should rise to $40 billion, and by 2025 it should go up to $100 billion, Modi said.

Despite the rivalry between China and India, New Delhi has received the largest share of AIIB funding so far about $1.3 billion.As well as disputes over stretches of a 3,500 km (2,200 miles) border the two fought a brief border war in 1962 – the Asian giants have squabbled over China’s signature “Belt and Road” infrastructure initiative.India has signaled unease over China’s grand trade and transport plan as one strand runs through Pakistani-administered Kashmir, which India claims. Many “Belt and Road” projects are supported by China’s state-owned banks and the AIIB.

However, at a summit meeting in April, Modi and Chinese leader Xi Jinping agreed to begin a new chapter in their relationship.AIIB President Jin Liqun said that between now and 2030, Asia’s investment in infrastructure must rise to $2 trillion a year, about triple that in the past.