MUMBAI (Reuters) – The Asian Investment Bank in Infrastructure (AIIB) backed by China should multiply ten-fold loans in two years to help the region meet its investment needs faster, said Prime Minister Narendra Modi at the third annual meeting of the multilateral lender in Mumbai.
To date, the AIIB's loan portfolio amounts to $ 4 billion, but by 2020 the figure should rise to $ 40 billion, and by 2025 it should rise to $ 100 billion, Modi said.
AIIB started operating in January 2016, having been chosen by Beijing as an alternative to other multilateral lenders such as the World Bank and the Asian Development Bank. It has 87 members, a capital base of $ 100 billion, and has approved 25 projects in a dozen countries so far.
Despite the rivalry between China and India, New Delhi has received most of the funds from AIIB so far, about $ 1.3 billion.
In addition to disputes along stretches of a 3,500-km (2,200-mile) border – the two fought a brief border war in 1962 – Asian giants fought over China's "Belt and Road" infrastructure initiative.
India has signaled concern over China's large commercial and transportation plan, since a chain runs through Kashmir administered by Pakistan, which India claims. Many "Belt and Road" projects are supported by the Chinese state banks and the AIIB.
However, at a summit meeting in April, Modi and Chinese leader Xi Jinping agreed to start a new chapter in their relationship.
Modi said that finding resources to improve infrastructure in developing countries was a challenge and that multilateral institutions, including AIIB, can play a "central role" in helping to raise resources.
The president of AIIB, Jin Liqun, said that between now and 2030, Asia's investment in infrastructure should increase to $ 2 billion a year, almost triple than in the past.
"This is a huge challenge," he said.
Information from Suvashree Dey Choudhury; Editing by Simon Cameron-Moore