Even as the Indian armed forces engage in a tense confrontation with the Chinese PLA army along the real line of control in eastern Indian Ladakh, some left-wing individuals and media organizations have used this crisis. to undermine India’s position against Chinese conceptions expansionism, only to peddle their program against the Modi government.
Former Congress President Rahul Gandhi posted a tweet today, raising criticism of the Modi government. Gandhi’s scion tweeted that the Indian government had taken out huge loans from a China-based bank amid the border brawl between the two countries.
PM बोले कि कोई सीमा में नहीं घुसा
चीन-स्थित बैंक से भारी क़र्ज़ा लिया
रक्षामंत्री ने कहा चीन ने देश में अतिक्रमण किया
गृह राज्य मंत्री ने कहा अतिक्रमण नहीं हुआ
– Rahul Gandhi (@RahulGandhi) September 16, 2020
Earlier today, a report titled ‘Chinese Loan Horse Without Mouth‘was published in’ The Telegraph ‘which said that India had signed a loan agreement with the Asian Infrastructure Investment Bank in the amount of $ 750 million to support measures undertaken under the Pradhan Mantri Garib Kalyan Yojana (PMGKY). The report said India then took out two loans worth $ 1,350 million from the bank in which Beijing is the majority shareholder in the midst of a simmering stalemate between the two armies at the LAC.
“On June 19, four days after the Galwan massacre in which China also claimed unspecified casualties, India signed the $ 750 million loan agreement with the AIIB to overcome the coronavirus crisis . It was also the day Prime Minister Modi made the ‘no trespassing’ declaration, “reads the innuendo-filled Telegraph article, indirectly suggesting that the Indian government signed an agreement. loan with China following the clashes in the Galwan Valley.
Likewise, he added: “On May 8, at a time when the first reports of Chinese incursions into several places in eastern Ladakh had started to arrive and were largely ignored by the Indian government, another loan from 500 million dollars had been contracted with the AIIB to fight against the pandemic at home. ”
The article questioned the Indian government’s policy of banning Chinese apps amid border tensions while simultaneously seeking loans from a Beijing-based bank.
Asian Infrastructure Investment Bank, a multilateral bank with more than 100 members
While Rahul Gandhi alluded to the fact that the Indian government took loans from a China-based bank during the current LAC standoff, what he conveniently failed to mention is that the bank in question, Asian Infrastructure Investment Bank, although based in China, is a multilateral bank with over 100 members.
The bank was established with the aim of improving social and economic outcomes in Asia and regions beyond. It started its operations from January 2016 and has over 103 members. Although China is the bank’s majority shareholder with 26.61% of the voting shares, India is the second largest shareholder with 7.6 percent of shares with voting rights. Like any other multinational institution, the AIIB is one such organization to help its member countries overcome the daunting challenges of infrastructure development.
However, such nuances were either lost or deliberately ignored by Rahul Gandhi when he alleged that India had requested large loans from a “China-based” bank. Since India is part of the organization and owns significant voting shares, it is well within its legal and moral rights to obtain loans to meet its financial needs.
On the other hand, the Telegraph, despite the nature and details of the Asian Infrastructure Investment Bank, as well as India’s participation in the institution in the article, did not hesitate to question the wisdom of the central government to sign bank loans. based outside of China.
The organization, Asian Infrastructure Investment Bank, was formed with the express desire to help member countries with their infrastructure development projects, but the Telegraph dishonestly hinted that India borrowed from a Chinese bank even then. that its armed forces are embroiled in a tense stalemate along the LAC.
Far from what the Telegraph and Rahul Gandhi were alluding to, the AIIB is not a Chinese commercial bank. It is a multilateral institution. The fact that its headquarters are in Beijing does not make it a Chinese bank. In addition to this, India’s Minister of Finance sits on the AIIB Board of Governors. In other multilateral organizations such as the BRICS Bank or the New Development Bank, the Indian Minister of Finance sits on the board of governors.