India likely to be vice president of China-led AIIB
22 April 2015
India, which is the second largest member-economy in the China-led Asia Infrastructure Investment Bank (AIIB) after China, is likely to become its vice president, after 56 countries joining the bank as founding members.
Chances of India becoming the bank's vice president of the bank are stated to be high as the vote share is expected to be based on 50 per cent gross domestic product (GDP) and 50 per cent purchasing power parity (PPP).
Obviously, with the Beijing headquartered bank being headed by China, which is the top economy in Asia on any count, India should get the second place since primacy is given to Asian countries as the bank aims to fund infrastructure projects mainly in Asia.
Beijing had earlier offered Japan a preferential post at the AIIB if the country joined it, but Tokyo declined the offer and chose to align with the US instead, the Chinese edition of Japan's Nikkei reported on Monday.
Under the guidelines, India figured next to China and is expected to take the lead role, they said, negotiators said.
Chief negotiators of the countries would hold a meeting next week to begin consultations to finalise the format of the AIIB's functioning, including the voting share.
The MoU of the bank to be headquartered in Beijing specifies that the authorised capital of AIIB will be $100 billion with an initial subscribed capital of $50 billion.
India has already been designated to head the BRICS (Brazil, Russia, India, China, South Africa) Development Bank, which will be headquartered in Shanghai.