Finance Minister Nirmala Sitharaman encouraged the Asian Infrastructure Investment Bank (AIIB) to endeavor for standardization and the increased provision of innovative financial tools and products.
Sitharaman suggested that the AIIB should consider broadening its selection of non-lending services, including timely technical and project preparation assistance, with a particular emphasis on low-income countries.
The finance minister was in attendance at the Governors’ Business Roundtable during the 9th Annual Meeting of the Board of Governors of AIIB in Samarkand, Uzbekistan.
At the ‘Building Resilient Infrastructure for All’ conference, Sitharaman acknowledged that the world is confronted with numerous obstacles. She observed that the necessity for sustainable and resilient infrastructure is now more urgent than ever, as the effects of climate change are becoming more apparent.
Sitharaman, the Indian governor to the AIIB, stated at the annual meeting that the capacity of numerous countries to finance this infrastructure is being restricted by geopolitical tensions and unsustainable debt burdens, thereby placing the responsibility on the AIIB. She asserted that the governors are accountable for guaranteeing that AIIB fulfills its obligations. The bank’s second-largest shareholder is India.
The finance minister commended AIIB’s client-centric approach, its agile response during the COVID-19 pandemic, the execution of several special funds to deepen client outreach, and recent initiatives like climate-focused policy-based financing. However, she also stated that, as imagined by the G20, there is much more to be done in terms of scale and impact.
The finance minister stated that the AIIB’s impact can be significantly enhanced by fostering strategic partnerships, engaged policy dialogue, and a vibrant exchange of global best practices and expertise.
Sitharaman also discussed the massive expansion of physical infrastructure and the multiplier effects of digital public infrastructure as a potent catalyst for sustained growth. She further stated, “In our pursuit of a resilient future, we are currently placing a significant emphasis on urban infrastructure, e-mobility, and renewable energy, given the robust foundation we have established.”
“The finance ministry stated that the Union finance minister has guaranteed India’s complete cooperation and support for AIIB to lead in this transformative journey toward a resilient and inclusive future.”
Delegations from approximately 80 countries and other international organizations participate in the AIIB Annual Meeting.
AIIB, a multilateral development bank, is dedicated to the promotion of investments in infrastructure and other productive sectors, as well as the development of sustainable infrastructure in Asia.
