India joins China's Asian Infrastructure Investment Bank

India signed its intent to be part of the Asian Infrastructure Investment Bank (AIIB), proposed by China and perceived to be a project close to President Xi Jinping’s idea of having a parallel international financial system traditionally spearheaded by the International Monetary Fund (IMF) and the World Bank.
Indian officials said New Delhi sees it as an effort to “fill the gap in international financial infrastructure, complementing the existing stream of funding”.
Some experts have said this was China’s effort to rival the IMF and World Bank in its quest for increasing its financial clout, first in Asia and then the rest of the world. Australia, Indonesia —where Xi first spoke about the bank last year — and South Korea skipped the launch of the bank.
Besides India and China, 19 other Asian countries, including Pakistan, Sri Lanka, Bangladesh, Singapore and Malaysia inked the memorandum at a function in Beijing on Friday.
Usha Titus, joint secretary in the department of economic affairs in the finance ministry, flew into Beijing for a day to sign the memorandum. The idea of AIIB was floated late last year and India was approached by China in the middle of this year to be a part of it. A delegation from China’s finance ministry went to New Delhi soon after with a blueprint of the bank including what it wants to achieve.
Friday’s signing was the beginning of the process, officials said, adding that it was by no means binding on the signatories to continue to be part of it if they want out. Foreign ministry, spokesperson, Hua Chunying, welcomed India’s participation in the AIIB.
Agency reports quoted US secretary of state John Kerry as voicing concerns whether the AIIB will meet international standards in governance, transparency and ambiguous nature.
On US’ concerns about the bank, Hua said the banks operations will be transparent.
Meeting the representatives including Titus, Xi said he was look “forward to better global financial governance”.

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