Why this matters now
AIIB is tested for: its China-led origin (US opposed, UK + Germany + France joined despite US pressure), India’s 7.62% voting share (2nd-largest), the AIIB’s largest single-country exposure being India (~$10.3 billion approved across 36 projects by 2024), and the comparison with the BRICS New Development Bank (Shanghai).
History & capital
Chinese President Xi Jinping proposed AIIB in October 2013 during his Southeast Asia tour. The Articles of Agreement were signed by 57 founding members on 29 June 2015 at Beijing, came into force on 25 December 2015, and the AIIB opened on 16 January 2016. Authorised capital $100 billion; paid-in capital ~$20 bn.
Top shareholders (by voting share):
| Rank | Country | Capital share | Voting share |
|---|---|---|---|
| 1 | China | 30.86% | 26.06% |
| 2 | India | 8.45% | 7.62% |
| 3 | Russia | 6.79% | 6.15% |
| 4 | Germany | 4.55% | 4.16% |
| 5 | South Korea | 3.79% | 3.50% |
USA + Japan are NOT members. UK was the first major Western country to join (announced March 2015), followed by Germany, France, Italy. Pakistan is a founding member with 1.10% voting share.
Governance
The Board of Governors is the highest body (Finance Minister of each member). The Board of Directors has 12 (9 from regional + 3 non-regional members). The President serves a 5-year renewable term — Jin Liqun (China) has been President since 2016, re-elected 2021 till 2026. Headquarters at AIIB Tower, Beijing.
India @ AIIB — largest borrower
India is the 2nd largest shareholder AND the largest borrower. By December 2024, AIIB had approved over $10.3 billion across 36 projects in India. Major projects:
- Bangalore Metro Rail Project — $335 mn.
- Andhra Pradesh Rural Roads — $455 mn.
- Madhya Pradesh Rural Connectivity.
- Mumbai Urban Transport Project-3.
- National Investment and Infrastructure Fund (NIIF) — $200 mn equity.
- Chennai Metro Rail Phase 2, Bengaluru Metro Phase 2A.
- Renewable energy: ReNew Power, Greenko Group projects.
India hosted the 3rd AIIB Annual Meeting at Mumbai in June 2018. Comparison: AIIB’s 109 members vs. NDB’s 9 (BRICS+ shareholders). NDB capital $100 bn (subscribed $50 bn) vs AIIB authorised $100 bn (paid-in $20 bn).
UPSC angle
Know AIIB (Asian Infrastructure Investment Bank) — multilateral development bank, China-led, proposed Xi Jinping Oct 2013, Articles of Agreement signed 29 June 2015 Beijing by 57 founding members, in force 25 Dec 2015, opened 16 Jan 2016; HQ AIIB Tower Beijing; 109 members; authorised capital $100 bn paid-in ~$20 bn; PRESIDENT JIN LIQUN China since 2016 re-elected 2021 till 2026; USA + Japan NOT members; UK first major Western to join March 2015; INDIA 2ND LARGEST SHAREHOLDER (8.45% capital, 7.62% voting share); China 1st (30.86%/26.06%), Russia 3rd, Germany 4th, South Korea 5th; Pakistan founding member 1.10%; INDIA LARGEST BORROWER — AIIB approved $10.3+ bn across 36 projects by Dec 2024 (Bangalore Metro, AP Rural Roads $455 mn, Mumbai Urban Transport-3, NIIF $200 mn equity, Chennai+Bengaluru Metro Phase 2, ReNew Power); India hosted 3rd AIIB Annual Meeting MUMBAI June 2018; comparison NDB BRICS HQ Shanghai 9 members capital $100 bn subscribed $50 bn.
Frequently asked questions
When did AIIB open?
On 16 January 2016 at Beijing, with $100 bn authorised capital. Proposed by Xi Jinping in October 2013, Articles signed by 57 founding members in June 2015.
Is India a member of AIIB?
Yes — India is the 2nd largest shareholder (7.62% voting share, after China at 26.06%). India is also the largest borrower — $10.3+ billion approved across 36 projects by December 2024.
Are USA and Japan members of AIIB?
No — the USA opposed AIIB’s creation and Japan stayed out, though most other developed economies (UK, Germany, France, Italy, Canada, Australia, South Korea) are members.
What is the difference between AIIB and BRICS NDB?
AIIB (Beijing, 2016, 109 members, China-led, $100 bn authorised) is a broader multilateral bank. NDB (Shanghai, 2014, 9 BRICS+ members, $100 bn authorised, $50 bn subscribed) is a BRICS-specific MDB.