← All questionsGS2 · 2014 · International Relations ·NDB and AIIB for India
MAINS 2014
GS2
12.5 marks

India has recently signed to become founding member of a New Development Bank and also the Asian Infrastructure Investment Bank. How will the role of the two Banks be different? Discuss the significance of these two Banks for India.

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9 min
200 words
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What the examiner wants

Distinguish the roles of NDB and AIIB and discuss their significance for India.

DiscussExplain the different sides of the issue, use evidence, and finish with a balanced view.

Demand-wise check

  1. 1NDB: BRICS bank, Shanghai, equal shareholding of five founders, infrastructure and sustainable development in BRICS and EMDCs≈35 words
  2. 2AIIB: China-led, Beijing, broader membership, Asian infrastructure focus, China with largest vote share≈35 words
  3. 3Significance: infrastructure finance, alternative to Bretton Woods, voice for developing countries, local currency lending≈35 words
  4. 4Concerns: Chinese dominance, debt traps, governance standards≈35 words

Open in about 30 words and close in about 30.

Answer plan

Introduce bothDifferences tableSignificance for IndiaConcernsConclusion

Where marks usually go

  • Not distinguishing their roles clearly
  • Missing India's actual borrowing from them

Draw this

  • Comparison table: NDB vs AIIB (founding, HQ, capital, members, voting)

Value addition

  • DataNDB, agreed at the Fortaleza BRICS summit (2014), had initial subscribed capital of US$50 billion with equal shares; first president K.V. Kamath.NDB
  • DataAIIB (operational 2016) has authorised capital of US$100 billion; India is the second-largest shareholder and its largest borrower.AIIB