Amid India-China tension, Beijing-based AIIB approves $750M loan to India to fight Covid

Amid the India-China standoff and ensuing deliberation over economic activities pertaining to China in India, China-based Asian Infrastructure Investment Bank (AIIB) on Thursday approved a $750 million loan to India in order to help them strengthen its response against the Coronavirus crisis. According to reports, the AIIB in a statement said that the budgetary support will go toward bolstering economic aid for businesses, including for the informal sector, expanding social safety nets for the needy, and strengthening the country’s health care systems. This loan is co-financed with the Asian Development Bank (ADB), of which India is a key member. 

Earlier, the AIIB had approved a $3.06 billion loan, including a recent $500-million COVID-19 emergency response. The current loan is being provided under the multilateral agency's COVID-19 Crisis Recovery Facility. According to AIIB Vice-President, investment operations, DJ Pandian, the support to India aims to ensure economic resilience to prevent long-term damage to productive capacity, including human capital. 

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India-China face-off

As many as 20 Indian Army soldiers were martyred during a violent face-off between India and China while the de-escalation process was underway in the Galwan Valley. According to the Editor-in-Chief of the Chinese mouthpiece Global Times, the Chinese side also suffered casualties during the physical clash. Sources revealed that an Indian colonel was attacked by Chinese Army personnel with iron rods without any provocation leading to a strong retaliation from the Indian side. As per US intelligence reports, 35 Chinese soldiers have been killed.

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