A 2019 UPSC question asked how many countries belong to the AIIB, and who its biggest shareholder is. Most students got the shareholder wrong. China founded the bank in 2016 and still holds its largest shareholding. India is a founding member too, and today it is the bank’s single largest borrower.
What Is the AIIB, and Who Founded It?
China proposed the Asian Infrastructure Investment Bank in 2013. The idea quickly drew support from dozens of countries.
- Fifty countries signed AIIB’s Articles of Agreement on 29 June 2015, in Beijing.
- The Agreement entered into force on 25 December 2015. The bank formally began operations on 16 January 2016.
- AIIB is headquartered in Beijing, at the Asia Financial Center in Chaoyang District.
- Its mandate is to finance infrastructure and other productive sectors, in Asia and beyond. Its own motto calls this “Lean, Clean, and Green” investment.
- AIIB is capitalised at $100 billion in authorised capital. Major rating agencies give it an AAA credit rating.
Remember This
AIIB was proposed in 2013, signed in 2015, and began operations in 2016. Three different years, three different stages — exams love mixing these up.
How Big Is AIIB’s Membership?
AIIB has grown fast since its founding.
- AIIB has 111 approved members, as of 2026. This mix includes both regional and non-regional countries.
- Membership crossed 80 well before 2019. It passed the 100-member mark in July 2019, the same year UPSC asked about it.
- AIIB does have members from outside Asia. Several big economies are non-regional members too. These include the United Kingdom, Germany, France, Canada, and Australia.
- African and Latin American states have joined too. This group includes South Africa, Kenya, Morocco, Argentina, and Uruguay.
- Germany is AIIB’s largest non-regional shareholder. Germany holds a bit over 4% of total voting power.
Who Controls the Most Voting Power?
Voting shares at AIIB roughly track how much capital each country put in.
| Country | Voting Power | Rank |
|---|---|---|
| China | ~26.5% | 1st |
| India | ~7.6% | 2nd |
| Russia | ~5.9% | 3rd |
| Germany | ~4%+ | Largest non-regional |
- Major AIIB decisions need a super-majority of 75% of voting power. China’s ~26.5% share alone is enough to block any such decision on its own.
- AIIB runs on a non-resident Board of Directors. This keeps its governance leaner than older institutions with full-time resident boards.
Why Is India So Important to the AIIB?
India’s role at AIIB goes well beyond just being a founding member.
- India is AIIB’s single largest borrower. It accounts for roughly a quarter of the bank’s total lending.
- AIIB financing to India covers several sectors. These include energy, transport, urban infrastructure, and public health.
- In January 2026, AIIB approved $250 million for a sustainable on-lending facility in India. This money supports low-carbon vehicles. It also supports renewable energy.
- India is also a member of two other groups. It joined the Missile Technology Control Regime in 2016. It joined the Shanghai Cooperation Organisation in 2017. UPSC Prelims 2022 tested all three memberships together.
How Does AIIB Compare to the World Bank and ADB?
AIIB is the newest of the three major institutions India works with.
| Institution | Founded | Board Style |
|---|---|---|
| World Bank | 1944 | Full-time resident board |
| Asian Development Bank | 1966 | Full-time resident board |
| AIIB | 2016 | Non-resident board |
- AIIB is not a rival to these older institutions. It co-finances many projects jointly with the World Bank Group and the ADB.
- AIIB’s non-resident board keeps its staff and overhead smaller than the World Bank’s or ADB’s, by design.
- AIIB turned 10 years old in January 2026. In its first decade, it approved nearly $70 billion in financing, across 361 projects.
Who Leads the AIIB Today?
AIIB’s leadership changed hands in early 2026, after a decade under its founding President.
- Jin Liqun was AIIB’s founding President, serving two five-year terms from 16 January 2016 to 15 January 2026.
- Zou Jiayi, a former Chinese Vice Minister of Finance, took charge as President on 16 January 2026.
- In April 2025, AIIB appointed Ajay Bhushan Pandey as Vice-President for Investment Solutions. He is India’s former Finance Secretary. He also helped build Aadhaar and UPI.
Test Yourself: True or False?
1. China is the largest shareholder of the AIIB.
2. AIIB has no members from outside Asia.
3. India is AIIB’s single largest borrower.
What Should You Remember for the Exam?
AIIB began operations in 2016, headquartered in Beijing. China is the largest shareholder (~26.5%), India is second (~7.6%).
Exam Trap: Don’t mix up proposed (2013), signed (2015), and operational (2016) years.
AIIB has 111 approved members, including non-regional ones like the UK and Germany. A 75% super-majority is needed for major decisions, so China alone can block one.
India is AIIB’s largest borrower, taking about a quarter of its lending. AIIB uses a non-resident board, unlike the World Bank and ADB.
Exam Trap: UPSC CSP 2019, Q71 tested membership size, largest shareholder, and non-regional membership — only one statement was false.
Quick Answers
Who is the largest shareholder of the AIIB?
China is AIIB’s largest shareholder, holding roughly 26.5% of total voting power. India is the second-largest shareholder, with roughly 7.6%, and Russia is third.
How is AIIB different from the World Bank?
AIIB is much younger, founded in 2016 against the World Bank’s 1944. AIIB runs on a non-resident Board of Directors, which keeps its staff and overhead smaller. The two institutions are not rivals and co-finance many projects together.
Previous Year Questions
- 2019: UPSC Prelims, Question 71, tested AIIB’s membership size, largest shareholder, and non-regional membership. Only one of the three statements was correct.
- 2022: UPSC Prelims, Question 66, asked whether India belongs to AIIB, MTCR, and SCO, asked as: “Consider the following: 1. Asian Infrastructure Investment Bank 2. Missile Technology Control Regime 3. Shanghai Cooperation Organisation. India is a member of which of the above?” (UPSC CSP 2022, GS Paper I). The answer is all three.
MCQ on Asian Infrastructure Investment Bank
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