Previous Year Question
With reference to the Asian Infrastructure Investment Bank (AIIB), consider the following statements:
AIIB has more than 80 member nations.
India is the largest shareholder in AIIB.
AIIB does not have any members from outside Asia.
Which of the statements given above is/are correct?
1 only
2 and 3 only
1 and 3 only
1, 2 and 3
Correct Answer: A
Detailed Solution
Statement 1 is correct. At the time of the examination, AIIB’s approved membership had exceeded 80. The Bank began operations in January 2016 with 57 founding signatories, and its membership expanded rapidly over the following years.
A distinction may exist between full members and prospective or approved members. A prospective member has received approval from AIIB’s Board of Governors but must complete its domestic procedures and deposit the necessary documents associated with the Articles of Agreement before becoming a full member. Nevertheless, AIIB includes approved members when reporting its overall membership.
Statement 2 is incorrect. India is not the largest shareholder in AIIB. China is the Bank’s largest shareholder and possesses the highest voting power. India is the second-largest shareholder after China.
Voting power in AIIB is primarily linked to subscribed capital, although basic votes and founding-member votes are also included.
India’s large shareholding is important because:
India is a major founding member;
India has substantial infrastructure-financing requirements; and
India has been among the largest recipients of AIIB financing.
Despite these facts, China—not India—is the largest shareholder.
Statement 3 is incorrect. AIIB is not restricted exclusively to Asian countries. Its Articles of Agreement expressly provide for both regional and non-regional members.
Countries outside Asia, including the United Kingdom, Germany, France, Italy and Canada, joined AIIB’s membership framework. Therefore, it is incorrect to state that AIIB has no member from outside Asia.
Although AIIB principally finances infrastructure and connectivity in Asia, its membership and financing partnerships are global.
Current position (2026)
According to AIIB’s current official records:
it has 111 approved members;
these comprise 106 full members and 5 prospective members;
its authorised capital is USD 100 billion;
its membership includes both regional and non-regional countries; and
China remains its largest shareholder, while India is the second-largest.