Arunchal plan causes China action

India is the largest borrower from both the World Bank and the Asian Development Bank and has always made good on its loan payments. The moneys are used for mega-development projects, usually around infrasctructure.

But a new plan to develop flood management, water supply and sanitation in the northeastern border state of Arunachal Pradesh caused China to block India’s request. Arunachal borders China and in 1962 the two countries were involved in a military skirmish.  Neither country accepts the other’s version of the border at this time.