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.
Posted on April 14th, 2009 by Gunjan
California-based management consultant Gunjan Bagla runs Amritt, a consulting firm helping American companies to succeed in India. He is author of Business in 21st Century India: How to Profit Today from Tomorrow’s Most Exciting Market (Hachette Book Group, July 2008).
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