Finance Minister Urges AIIB to Boost Investments in Climate and Infrastructure.

Finance Minister Nirmala Sitharaman has urged the Asian Infrastructure Investment Bank (AIIB) to expand its focus on critical sectors, including climate adaptation, energy security, urban development, and infrastructure. In a meeting with an AIIB delegation in New Delhi, Sitharaman, who is also an AIIB Board Governor, highlighted the importance of incorporating advanced financial tools into AIIB projects to enhance their impact.

The visiting AIIB delegation's key objective was to gain a comprehensive view of the bank’s ongoing and planned investments in its member nations, engaging with government officials, the private sector, and stakeholders. Sitharaman emphasized India’s commitment to supporting AIIB’s initiatives and proposed India as a testing ground for innovative financing models, noting the country’s experience in digital public infrastructure and disaster management as valuable resources for other economies.

Sitharaman encouraged AIIB to lead in mobilizing private capital and praised the bank’s growth over the past nine years. She also urged AIIB to continue collaborating with other Multilateral Development Banks (MDBs) to achieve greater impact, aligning with recommendations from India’s G20 Presidency. Her call included the need for governance reforms to ensure MDBs are inclusive and responsive to the needs of low-income nations.

Ahead of the meeting, the AIIB delegation visited India’s Regional Rapid Transit System (RRTS) project, a collaborative effort with the Asian Development Bank and New Development Bank. They are scheduled to tour additional projects in Bengaluru and engage with technology sector leaders.

HBL