India, China follow contrasting external lending strategies: World Bank

Escalating debt vulnerabilities in many low or middle-income countries and overlapping crises are forcing an increasing number of countries to seek debt restructuring from external creditors

India has increasingly become an important player as a bilateral creditor, with special focus on its immediate neighbourhood, according to the latest International Debt Report released by the World Bank.

In comparison, China, which continues to dominate as one of the largest bilateral creditors, has a diverse lending strategy with a focus on the African continent.

Aiming to become the leader of the Global South, India in recent years has also started to follow a diversification strategy and expand its presence in Africa with development finance assistance to countries like Malawi, Mozambique, Ghana, and others.

Escalating debt