India has recently signed to become founding member of New Development Bank (NDB) and also the Asian Infrastructure Investment Bank (AIIB). How will the role of the two Banks be different? Discuss the strategic significance of these two Banks for India.

Introduction

India is a founding member of both the New Development Bank, created by BRICS under the 2014 Fortaleza Declaration, and the Asian Infrastructure Investment Bank, which began operations in 2016. Though both address the developing world's vast infrastructure financing gap, their designs and roles differ significantly.

How the two banks differ

• Governance: the NDB rests on strict equality—the five BRICS founders subscribed capital equally, hold equal votes and rotate the presidency (India's K.V. Kamath was the first president). The AIIB has weighted shareholding: China holds roughly 26% of voting power—an effective veto over supermajority decisions—with India second at about 7.6%.
• Mandate and geography: the NDB funds infrastructure and sustainable development in BRICS and other emerging economies; the AIIB is Asia-centred with over 100 members, including Western economies.
• Character: the NDB is a statement of South-South parity; the AIIB, though genuinely multilateral, carries a Chinese strategic imprint.

Strategic significance for India

• Additional finance for India's infrastructure pipeline—India has been the AIIB's largest borrower, for metros, renewable energy and rural connectivity.
• Leverage against the Bretton Woods status quo, reinforcing India's demand for IMF-World Bank quota reform.
• A seat inside these institutions lets India shape lending norms and safeguards from within rather than face them from outside.
• The NDB's local-currency lending reduces dollar dependence for borrowers.

Conclusion

The two banks give India both voice and money: the NDB as an equal shareholder projecting South-South leadership, the AIIB as a pragmatic top borrower—together instruments of a more multipolar financial order.