Finance Minister Nirmala Sitharaman on Wednesday urged the Asian Infrastructure Investment Bank (AIIB) to fight for standardization and greater provision of financial instruments and new products. Sitharaman said the AIIB should consider expanding its range of non-lending services such as timely assistance for project preparation, especially in low-income countries.
The finance minister attended the Executive Business Roundtable at the 9th Annual Meeting of the AIIB Board of Governors in Samarkand, Uzbekistan.
Speaking on ‘Building Strong Infrastructure for All’, Sitharaman said the world is facing many challenges. With climate change making its presence felt, he noted that the need for sustainable and resilient infrastructure is higher than ever.
Attending the AIIB’s annual meeting as India’s governor of the bank, Sitharaman said political tensions and chronic debt burdens are reducing the ability of many countries to fund this infrastructure, thereby putting a burden on the AIIB. He said the administration has a responsibility to ensure that the AIIB delivers. India is the second largest shareholder of the bank.
While praising the AIIB’s customer-centric approach, its quick response during the COVID-19 crisis, the issuance of several special funds to deepen customer access, and recent initiatives such as climate-based financing, the finance minister said that, as the G20 aims, there is much more needs to be done – both in scale and impact.
“Enhancing strategic partnerships, policy dialogue, and robust exchange of global best practices and technologies can go a long way in increasing the impact of the AIIB,” the finance minister said.
Sitharaman also cited the large-scale growth of physical infrastructure combined with the multiplier effects of digital public infrastructure as a powerful driver of continued growth. “With such strong fundamentals, we are now focusing on urban infrastructure, e-mobility, and renewable energy on our journey to a sustainable future,” he added.
The finance minister called for the transfer of these best practices from India and other Asian countries to key areas such as low-income countries.
“The Union finance minister assured India’s full cooperation and support to the AIIB to lead this journey towards a strong and inclusive future,” the finance ministry said.
The AIIB Annual Meeting witnesses the participation of delegates from 80 countries and other international organizations.
As a multilateral development bank, AIIB focuses on developing sustainable infrastructure in Asia and promoting investment in infrastructure and other productive sectors.
First published: Sep 25 2024 | 11:10 p.m IST