FM urges AIIB to boost investments in climate, Infrastructure initiatives

In a meeting with the Asian Infrastructure Investment Bank (AIIB) delegation on Monday, India’s Finance and Corporate Affairs Minister, Nirmala Sitharaman urged for an expanded investment focus on priority sectors such as climate adaptation, infrastructure, energy security, and urban development. Emphasizing the significance of supporting India's next-generation reforms, Sitharaman urged AIIB to incorporate “finance plus” and “budget plus” elements in its projects, underscoring India’s commitment to innovative financing approaches.
Highlighting India’s robust macroeconomic fundamentals, the Finance Minister lauded AIIB’s growth trajectory over the last nine years. As an AIIB Governor, she reaffirmed India’s support for the bank’s initiatives, proposing that India could serve as a “sandbox” for testing innovative financing models and new technologies to mobilize private capital more effectively.
The visit by the AIIB delegation, which included 11 Board Directors from nine constituencies, AIIB management representatives, and staff, aimed to deepen the Board’s understanding of AIIB’s investment portfolio and engage with Indian government and private sector representatives. Prior to the meeting, the delegation visited the Regional Rapid Transit System (RRTS) project, funded jointly by AIIB, the Asian Development Bank, and the New Development Bank, gaining insights into India’s urban infrastructure initiatives,according to information.The delegation will also visit other project sites in Bengaluru and interact with leading technology sector representatives.
Sitharaman emphasized India’s digital transformation as a model for inclusive growth and urged AIIB to create mechanisms to share India’s sectoral expertise with other countries. She further encouraged AIIB’s active participation in ongoing efforts to strengthen Multilateral Development Banks (MDBs), aligning with recommendations from India’s G20 Presidency to enhance MDB responsiveness to Low-Income Countries.

(Business Correspondent)