China

50 nations, including India sign 60-article agreement on China-led AIIB

50 founding nations including India have signed 60-article agreement of China-led multilateral Asian Infrastructure Investment Bank (AIIB).

Australia was the first country to sign the agreement and was followed by 49 other members. Indian Ambassador Ashok Kantha signed the agreement on behalf of country.

The 60-article agreement provides the legal framework for

  • Institution of AIIB.
  • Each member’s capital share and voting share.
  • Governance structure of AIIB.
  • Policy-making mechanism of AIIB.

Facts about Asian Infrastructure Investment Bank (AIIB)

  • Designed to finance infrastructure projects including energy, transport and infrastructure projects in Asia.
  • AIIB is seen as a rival to the World Bank and Asian Development Bank (ADB) which managed by most prominent countries like US, Japan and European etc.
  • Headquarters:Beijing. It will be operational by end of 2015.
  • Authorized capital: It will be of 100 billion US dollars. The initial subscribed capital will be around 50 billion US Dollar and the paid-in ratio will be 20 per cent.
  • Regional character of the Bank: Its regional members (Asian) will be the holding around 75 percent of shares i.e. they will be majority shareholders.
  • They have been allocated their capital share on quota basis i.e. based on their economic size.
  • Voting share: for each member country it is based on the size of their economy and not on authorised capital share to the Bank.
  • Largest shareholders: China is highest contributor to AIIB with 29.78 billion US dollars i.e. with a 30.34 percent stake in authorized capital.
  • China will have 26.06 per cent of the voting rights along with veto powers for certain key decisions.
  • India: second largest shareholder with 8.52 per cent stake and voting share of 7.5 per cent.
  • Russia: third largest shareholder with 6.66 stake and voting share of 5.92 per cent.

It should be noted that there are 57 founder-member countries AIIB. Seven countries were not able to sign this agreement as it was not ratified by their respective domestic authorities. The seven countries are Denmark, Malaysia, Kuwait, Holland, Philippines and South Africa and Thailand.

Tags:

India Fourth Largest Carbon Emitter: WRI Analysis

India is fourth largest carbon emitter in the world in terms of per capita emission accounting for 6.6 % of global emissions for the year 2012.

It was revealed by the World Resources Institute (WRI) in its latest analyses of the country-wise carbon emissions of climate-damaging greenhouse gases (GHGs).

According to the analysis figures of WRI,

  • Top 10 emitters are: China (25.26%), US (14.4%), European Union (10.16%), India (6.69%), Russia (5.36%), Japan (3.11%), Brazil (2.34%), Indonesia (1.76%), Mexico (1.67%) and Iran (1.65%).
  • Emission Disparity: Largest 10 emitters have contributed a majority of over 72% of global GHGs emissions (excluding change in land use and forestry). Six of the top 10 emitters are developing countries.
  • On the other hand, the lowest 100 emitters had contributed less than 3% of global emissions.
  • Sector wise: energy sector is the largest source of GHGs emissions accounting for more than 75% of global emissions.
  • Industrial and agricultural sectors also have significantly contributed in GHGs emissions.

The WRI analysis was based on data from its Climate Analysis Indicators Tool (CAIT) for the year 2012. It had analysed various economic sectors for the overall emission from different countries.

Tags:

India becomes most attractive investment destination: BPI 2015

India has become most attractive investment destination in world after it was ranked first among 110 countries in a ranking of destinations for attractiveness to foreign investors.

The ranking was based on baseline profitability index (BPI) 2015. In this edition of China was placed at the 65th position and US was placed at the 50th.

India has emerged as top investment destination in BPI 2015 compared to previous 6th position held in the 2014 index. It should be noted that high ranking in this index indicates high returns and improving economic institutions.

India was able to top in this edition of BPI because of high growth forecasts, perceptions of corruption down and investor friendly polices of Union Government led by Prime Minister Narendra Modi.

About Baseline profitability index (BPI)

  • The ranking based on a BPI is determined by assuming three factors which affect the ultimate success of a foreign investment.
  • These factors are how much the value of an asset grows; the ease of repatriation of proceeds from selling the asset and the preservation of that value while the asset is owned.
  • The index combines measures for each of these factors into a summary statistic to determine country’s basic attractiveness for investment.
  • Thus, this index compares how local conditions and policies affect the same investment in different countries. It also helps to determine the value of the principal and the return will change depending only on where the investment is made.

Tags:

Advertisement

12345...102030...82