ISAS Briefs

India has emerged as the largest borrower from the China-led Asian Infrastructure Investment Bank (AIIB), much to the surprise of many. This paper studies the details of the AIIB’s funding for infrastructure projects in India. It argues India’s heavy use of the AIIB’s funds can be explained by its hunger for infrastructure finance, long-term economic viability of its projects and the AIIB’s eagerness to work with multiple stakeholders. These factors have led to heavy engagement between India and the AIIB, notwithstanding India’s opposition to China-led infrastructure initiatives like the Belt and Road.