Q2.India has recently signed to become a 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.

India's founding membership in NDB and AIIB signifies its engagement with emerging multilateral financial institutions.

Differences in Roles

• NDB (BRICS initiative): Focuses on sustainable development and infrastructure in member states, an alternative to Western IFIs.
• AIIB (China-led): Targets infrastructure connectivity and economic integration across Asia.
• Distinctions: Origin (BRICS vs. China-led), geographical focus (global South/BRICS vs. Asia), and mandates (sustainable development vs. infrastructure connectivity).

Strategic Significance for India

• Economic: Accesses alternative, cheaper, faster financing for India's infrastructure needs, boosting connectivity and trade.
• Geopolitical: Enhances multilateral engagement, shapes global financial architecture, balances Western influence, and strengthens regional ties. India's founding status ensures a strong voice.

These memberships strategically position India to leverage new financial avenues for development and assert influence in a multipolar global economic order.