AIIB Plans to Expand India Water Financing as El Niño Worsens Drought

The AIIB's push signals a shift in multilateral lending toward water infrastructure as climate stress intensifies, with India as the primary test case. The fact that water projects make up under 7% of the bank's $13.8 billion India portfolio despite the country's recurring drought exposure suggests significant room for reallocation, but also that water has been a marginal priority until now. Whether the AIIB can move from policy loans and pipeline announcements to actual disbursements—and whether governance reforms tied to those loans materialize—is the open question for anyone tracking climate-adaptation finance.