India signs $750 million deal with AIIB for Covid-19 support
The deal will help India get budgetary support to mitigate the adverse social and economic impact triggered by the COVID-19.
In a bid to strengthen India’s response to fight the Covid-19 pandemic, the Centre on Friday signed a $750 million worth of “COVID-19 Active Response and Expenditure Support Programme” with the Asian Infrastructure Investment Bank (AIIB). This was the first ever budgetary support programme from the AIIB to India.
As per a press statement from the Ministry of Finance, the programme will provide India with budget support to mitigate the severe adverse social and economic impact of COVID-19.
The current loan will be the second to India from AIIB under its COVID-19 crisis recovery facility apart from the earlier approved $500 million loan for the COVID-19
The primary programme beneficiaries would be families below the poverty line, farmers, healthcare workers, women, women’s self-help groups, widows, people with disabilities, senior citizens, low wage earners, construction workers and other vulnerable groups.
D.J. Pandian, AIIB vice-president (Investment Operations) said that AIIB’s support to India aims to ensure economic resilience to prevent long-term damage to the productive capacity, including human capital, of India’s economy.
The project is being financed by the AIIB and the ADB in the amount of $2.250 billion, of which $750 million will be provided by the AIIB and $1.5 billion will be provided by the ADB. The project will be executed by the Department of Economic Affairs through various line ministries.
The AIIB is a multilateral development bank with a mission to improve social and economic outcomes in Asia, began operations in January 2016. It has now grown to 102 approved members worldwide.