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Finance Minister Nirmala Sitharaman on Wednesday urged the Asian Infrastructure Investment Bank (AIIB) to strive for standardisation and greater provision of innovative financial tools and products. Sitharaman said that AIIB should consider expanding its range of non-lending services such as timely technical and project preparation assistance, particularly for low-income countries.
The finance minister was attending the Governors’ Business Roundtable at the 9th Annual Meeting of the Board of Governors of AIIB in Samarkand, Uzbekistan.
Speaking on ‘Building Resilient Infrastructure for All’, Sitharaman said that the world is facing multiple challenges. With climate change making its presence increasingly felt, she noted that the need for sustainable and resilient infrastructure is higher than ever.
Attending the annual AIIB meeting as the Indian governor to the bank, Sitharaman said that geopolitical tensions and unsustainable debt burdens are limiting the ability of many countries to finance this infrastructure, thus putting the onus on AIIB. She stated that the governors have the responsibility to ensure that AIIB delivers. India is the second-largest shareholder of the bank.
While commending 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, the finance minister stated that, as envisaged by the G20, much more needs to be done — both in terms of scale and impact.
“Promoting strategic partnerships, engaged policy dialogue, and a vibrant exchange of global best practices and expertise can go a long way in maximising AIIB’s impact,” the finance minister said.
Sitharaman also spoke about the large-scale expansion of physical infrastructure combined with the multiplier effects of digital public infrastructure as a powerful driver of sustained growth. “With such strong fundamentals, we are now focusing heavily on urban infrastructure, e-mobility, and renewable energy in our journey towards a resilient future,” she added.
The finance minister called for the transfer of such best practices from India and other Asian countries to important geographies like low-income countries.
“The Union finance minister assured India’s full cooperation and support for AIIB to lead in this transformative journey towards a resilient and inclusive future,” the finance ministry said.
The AIIB Annual Meeting witnesses participation of delegations from around 80 countries and other international organisations.
As a multilateral development bank, AIIB is focused on developing sustainable infrastructure in Asia and promoting investments in infrastructure and other productive sectors.
First Published: Sep 25 2024 | 11:10 PM IS