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India is a founding member of AIIB, and Modi govt has every right to borrow money from it

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What do political opportunists in the opposition ranks do, when they can’t fault the government? They start grabbing attention with one-liners or so-called ‘witty’ jibes. So, the latest piece of senseless propaganda being passed around is that the Modi government took a loan from a ‘China-sponsored’ Bank- the Asia Infrastructure Investment Bank (AIIB).

Of course, accuracy is being compromised for the sake of sensationalism here. None of the enraged critics seems to care about how AIIB isn’t a Chinese Bank or a Chinese development agency. In fact, it is a multilateral institution with 103 countries and India itself is the second-largest shareholder in this multilateral body.

It all started with The Telegraph report, titled, “China loan horse without a mouth,” which stated that India borrowed a sum of $750 million from the AIIB. The Telegraph further reported, “Narendra Modi government has formally confirmed that India took two loans totalling $1,350 million (Rs 9,202 crore) from the China-controlled Bank in the thick of the border standoff.”

AIIB, China, India

The Telegraph then tried to take a dig at the Modi government by claiming, “Action of delinking the government’s financial transactions from bilateral tensions goes against the Centre’s policy of cracking down on Chinese business relationships in India. Besides, the Indian external affairs ministry has been asserting that it cannot be business as usual in the face of Chinese attempts to unilaterally change the facts on the ground along the border.”

Soon the entire left-liberal ecosystem was up in arms. INC legislators, journalists and the rest of the leftist political spectrum came together to ask- Why the Modi government took loan from the AIIB? To somehow create a narrative, the AIIB is now being described as a ‘Beijing-based Bank’, ‘China-sponsored Bank’ and INC leader Randeep Singh Surjewala even called it a ‘Chinese government Bank’. And let’s not even talk about what Rahul Gandhi, the perpetual Prime Minister-in-waiting had to say about the AIIB loan.

Now, we at TFIPOST also have a question. We want to ask the distinguished economists of the leftist ecosystem- why should India not borrow from the AIIB? China may be the largest shareholder but India is also the second-largest shareholder in this multilateral development Bank.

Let us check some numbers- China does have a 26 per cent stake in the multilateral bank, but the rest of the stake is owned by more than 100 countries. India itself has an 8.7% share in AIIB, being the second-largest investor with a mammoth 8.4 billion Dollars stake. Also, India is a founding member of the Asia Infrastructure Investment Bank.

Now that India has played its role in giving birth to this Development Bank, why shouldn’t it avail cheaper loans from the AIIB for fuelling its own development? India has a deep and inalienable interest in the AIIB and India’s Union Finance Minister also sits on the Bank’s Board of Directors.

So, if we may do a little fact-check, the AIIB is neither a Chinese agency nor a China-controlled bank. And it is certainly not a China-sponsored bank. AIIB is just another infrastructure development Bank, and it isn’t very different from the World Bank or the Asia Development Bank.

By borrowing from a multilateral institution, India didn’t really borrow Chinese money. And what is the deal with the AIIB’s Beijing headquarters? How does that make the multilateral Bank Chinese, especially when as many as 103 countries are members of this multilateral body?

Even the World Bank is headquartered in Washington, does that make it an American institution? For decades, India and China have borrowed heavily from the World Bank. China still borrows indiscriminately from the World Bank though it doesn’t really need such soft loans. The US still has a 17.25 per cent stake in the World Bank, yet China hasn’t stopped borrowing from the multilateral body.

Beijing still benefits out of the World Bank notwithstanding China’s endless disputes with the democratic world. So, why should India stop borrowing from the AIIB to fuel its own development?

Just because a few Sinophiles think that the AIIB is a Chinese bank, Beijing doesn’t gain ownership of the AIIB. New Delhi has every right to develop its infrastructure by availing soft loans from the AIIB. And in doing so the Modi government is neither buying Chinese money nor is it legitimising China.



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‘We don’t figure out 1959 LAC,’ Right after China makes a new claim on Ladakh, India completely rejects China’s notion of LAC

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The Brigadier degree talks in between India & China are anything but conclusive and the Chinese are shedding their endurance. As the border tensions are speculated to worsen in the winters, India is getting ready for the long haul, and this has made China a good deal far more jittery, so considerably so, that it is singing the tone of their Pakistani underlings. As noted in Chinese mouthpiece World-wide Occasions, Overseas Ministry spokesperson Wang Wenbin explained “China does not acknowledge the so-known as Union Territory of Ladakh illegally set up by India, and opposes infrastructure development in disputed border parts for military services control purposes”, it was in reaction to the significant street-developing jobs alongside the border extra the Chinese point out-affiliated media. This was the initially time China has been so amateurish in their diplomacy as these are counter-intuitive statements.

The Indian federal government took no time to retaliate, in reaction Anurag Srivastava, Formal Spokesperson, Ministry of External Affairs, explained that “India says it has never ever recognized the so-referred to as unilaterally defined 1959 Line of Real Manage (LAC)”, it was a place India has preserved for prolonged and past calendar year, in Parliament, Union Residence Minister Amit Shah reasserted India’s situation vehemently, “When I say Jammu and Kashmir, it includes PoK. Both of those Indian and J&K constitutions also say that the state is an integral section of India and this provides us the suitable to form legal guidelines for the state, which features PoK and Aksai Chin”.

India taken care of its posture and also said that “We anticipate that the Chinese side will sincerely and faithfully abide by all agreements and understandings in their entirety and chorus from advancing an untenable unilateral interpretation of the LAC”. Right after the collection of statements and counterstatements for the previous couple of months, this newest exchange has re-opened the pandora’s box, and the dialogue on the Indian aspect of the border is solidifying the belief that India must not realize China’s promises on Tibet and also move absent from the a single-China plan recognizing Taiwan as an unbiased country, as it is the just & equitable reaction.

It can also be speculated that China did not expect that India will search it straight into the eye without the need of bending to the Chinese provocations. It has misinterpreted the hospitality PM Modi confirmed to be accepting the Chinese supremacy, which was a even worse calculation than a 3-year-outdated can carry out. And the death of 20 Indian soldiers has created all the points incredibly personalized for each and every Indian citizen and PM Modi.

As earlier described in TFI “Dr S. Jaishankar, India’s Overseas Minister also conveyed to Wang Yi, his counterpart from China that India was prepared to disengage, but the onus close to the same would lie exclusively with China, which is instead notorious for strolling again on its commitments. With no visible change in the ground predicament nonetheless, and an uneasy quiet prevailing along the LAC for the previous one 7 days, it is very possible that China is keen to surrender. It is also probable that they are strategizing their up coming offences against India, in which circumstance they will have to component approaches with Aksai Chin.”

The winters are coming, China is fearful as India is digging in for the winters, as for every HT experiences, “Since early May possibly, India and China have been engaged in a standoff in Ladakh sector of the LAC that has taken bilateral ties to an all-time very low. The two sides have mobilized far more than 50,000 troops just about every in the region and are now preparing to dig in for the harsh wintertime.” India has been equipping its troopers and leaving no stones unturned so that its very pleased line of defence (Indian Armed Forces) are not enable down by the federal government. PM Modi’s unwavering assistance for the armed forces and adult males & girls in uniform elevated their morale, and the Chinese are rattled.



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