Is India also falling into Chinese Debt Trap??
In this video, we will discuss if India should take loans from Chinese bank.
Reference -
https://economictimes.indiatimes.com/news/economy/infrastructure/china-backed-aiib-eyes-1-billion-infrastructure-push-in-india/articleshow/63110564.cms
https://www.hindustantimes.com/business-news/china-backed-aiib-eyes-1-billion-infrastructure-push-in-india/story-mg5y0XtuRyjrV8aAwvMf8N.html
https://sputniknews.com/business/201802281062070502-india-seeks-aiib-funds/
https://en.wikipedia.org/wiki/Asian_Infrastructure_Investment_Bank
https://en.wikipedia.org/wiki/List_of_countries_by_foreign-exchange_reserves
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Transcript -
Hello Friends, welcome to Real Quick Info channel.
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Lets discuss about today's topic.
You know, China has the largest foreign exchange reserves in the world.
In comparison to Indian foreign reserves of 400 Billion Dollars, China has got more than 3 Trillion Dollars. Yes, In comparison to India, China has 7 times more foreign exchange reserve.
Therefore Expecting better return on investment, China is found to be throwing its excess money for Infrastructural development in other countries.
In order to make better use of Chinese foreign currency reserves, China has set up Asian Infrastructure Investment Bank with a capital of 100 Billion Dollars.
India is also member of this bank headquartered in Beijing.
Primary aim of this bank is to support the building of Infrastructure in the Asia Pacific region.
While we all talk about our neighboring countries falling into Chinese debt trap, its interesting to know, in last two years India has received 40% of the total loans distributed by this bank.
India is seeking even greater assistance from this multilateral lending agency, in order to bridge the infrastructure deficit, which can improve the quality of life for the rural poor.
This bank is about to fund Metro rail system in Mumbai, rural road construction project in the state of Madhya Pradesh, and Irrigation and flood control projects in West Bengal.
However, Bank has natural desire to create balance in loan distribution by funding projects in other countries like Pakistan and Sri Lanka.
Needless to say, the same bank may also end up investing money in Belt and Road Initiative, and China Pakistan Economic Corridor project.
Hence, the question is, does this create an awkward position for India?
As far as we think, we got to take project specific approach here. As long as this bank is funding the project on favorable conditions, we should welcome it.
Though China is largest shareholder, and India is the biggest borrower of this bank, yet fact remains, we need funding for the rapid infrastructural development.
China Pakistan Economic Project violates our sovereignty, Hence we oppose it. But does that mean, we stop engaging with China bilaterally?
We are big nation, and we should engage China with degree of confidence.
Hence, Keeping in view long term national interests in mind, we should welcome infrastructural funding for economically viable projects from all sides.
If china can help us in some project, we should take it.
As per your views, since China is main stakeholder, should India avoid taking loans from this bank?
Please let us know your views in comment section below.
Please find the reference links of this video in the description box below. Thank you friends.
Tags
India taking loans from China,
AIIB,
Asian Infrastructure Investment Bank,
China Pakistan Economic Corridor Project,
CPEC,
Belt and Road initiative,
One Belt One Road Initiative,
BRI,
OBOR,
AIIB funding OBOR,
AIIB Fuding BRI,
Why India should take loan from AIIB,
Why India should take loan from China,
India China relationship,
India in Chinese debt trap,
Chinese debt trap around India,
AIIB Funding Indian projects,
China Fuding Indian projects
Please subscribe our channel, and click on bell icon to get instant notification for our new video upload .
Lets discuss about today's topic.
You know, China has the largest foreign exchange reserves in the world.
In comparison to Indian foreign reserves of 400 Billion Dollars, China has got more than 3 Trillion Dollars. Yes, In comparison to India, China has 7 times more foreign exchange reserve.
Therefore Expecting better return on investment, China is found to be throwing its excess money for Infrastructural development in other countries.
In order to make better use of Chinese foreign currency reserves, China has set up Asian Infrastructure Investment Bank with a capital of 100 Billion Dollars.
India is also member of this bank headquartered in Beijing.
Primary aim of this bank is to support the building of Infrastructure in the Asia Pacific region.
While we all talk about our neighboring countries falling into Chinese debt trap, its interesting to know, in last two years India has received 40% of the total loans distributed by this bank.
India is seeking even greater assistance from this multilateral lending agency, in order to bridge the infrastructure deficit, which can improve the quality of life for the rural poor.
This bank is about to fund Metro rail system in Mumbai, rural road construction project in the state of Madhya Pradesh, and Irrigation and flood control projects in West Bengal.
However, Bank has natural desire to create balance in loan distribution by funding projects in other countries like Pakistan and Sri Lanka.
Needless to say, the same bank may also end up investing money in Belt and Road Initiative, and China Pakistan Economic Corridor project.
Hence, the question is, does this create an awkward position for India?
As far as we think, we got to take project specific approach here. As long as this bank is funding the project on favorable conditions, we should welcome it.
Though China is largest shareholder, and India is the biggest borrower of this bank, yet fact remains, we need funding for the rapid infrastructural development.
China Pakistan Economic Project violates our sovereignty, Hence we oppose it. But does that mean, we stop engaging with China bilaterally?
We are big nation, and we should engage China with degree of confidence.
Hence, Keeping in view long term national interests in mind, we should welcome infrastructural funding for economically viable projects from all sides.
If china can help us in some project, we should take it.
As per your views, since China is main stakeholder, should India avoid taking loans from this bank?
Please let us know your views in comment section below.
Please find the reference links of this video in the description box below. Thank you friends.
Tags
India taking loans from China,
AIIB,
Asian Infrastructure Investment Bank,
China Pakistan Economic Corridor Project,
CPEC,
Belt and Road initiative,
One Belt One Road Initiative,
BRI,
OBOR,
AIIB funding OBOR,
AIIB Fuding BRI,
Why India should take loan from AIIB,
Why India should take loan from China,
India China relationship,
India in Chinese debt trap,
Chinese debt trap around India,
AIIB Funding Indian projects,
China Fuding Indian projects
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