Finance Minister Nirmala Sitharaman on Wednesday said Asian Infrastructure Investment Bank should consider expanding its range of non-lending services such as technical and project preparation assistance, particularly for low-income countries.
She exhorted AIIB to strive for standardisation and greater provision of innovative financial tools and products, besides playing a catalytic role in mobilising private sector resources, not just in terms of capital but also its technical expertise, innovation, and market-driven approaches.
Beyond financial innovations, she 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 ministry said in a post on X.
Speaking on 'Building Resilient Infrastructure for All', the Union Finance Minister said that the world is facing multiple challenges; with climate change making its presence increasingly felt, the need for sustainable and resilient infrastructure is higher than ever.
She noted that geopolitical tensions and unsustainable debt burden are limiting the ability of many countries to finance this infrastructure, thus putting the onus on AIIB.
She said that the Governors have the responsibility to ensure that AIIB delivers.
The Finance Minister commended AIIB’s client-centric approach, its agile response during the COVID-19 pandemic, its execution of several special funds to deepen client outreach and recent initiatives like climate-focused policy-based financing.
However, the Finance Minister said that as envisaged by the G20, much more needs to be done; both in terms of scale and impact.
Mentioning Indian experience, Sitharaman emphasised on large-scale expansion of physical infrastructure combined with the multiplier effects of digital public infrastructure DPI can prove to be 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 said.
She encouraged AIIB to facilitate the transfer of such best practices from India and other Asian countries in expanding to important geographies like low-income countries while simultaneously preserving its Asian context.
She assured of India's full cooperation and support for AIIB to lead in this transformative journey towards a resilient and inclusive future.
Earlier during the day, during a meeting with its AIIB president Jin Liqun ahead of the 9th Annual Meeting of Board of Governors in Samarkand (Uzbekistan), Sitharaman appreciated the bank's rapid growth in lending operations in a short span of nine years.
"The Union Finance Minister suggested that @AIIB_Official should continue strengthening its client-centric approach and facilitate member countries, particularly Low-Income Countries to avail financial resources through technical assistance and other non-financial services," the ministry said in a post on X.
India being the second-largest shareholder and the largest client, the AIIB President appreciated India's contributions to the governance and overall growth of the bank and expressed to explore opportunities to further strengthen the ties with India, it said.
As a multilateral development bank, Beijing-based AIIB is focused on developing sustainable infrastructure in Asia and promoting investments in infrastructure and other productive sectors, with a view to fostering sustainable economic development, creating wealth, and improving infrastructure connectivity.
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