India’s Finance Minister Nirmala Sitharaman recently called on the Asian Infrastructure Investment Bank (AIIB) to expand its non-lending services, especially for low-income countries. These services include technical assistance and project preparation support, which can be crucial in building sustainable infrastructure.
During her address on Wednesday, Sitharaman urged AIIB to create more innovative financial tools and products. She also emphasized the importance of mobilizing private sector resources, not just as capital but also through technical expertise and innovation.
In a post shared by the Finance Ministry on X, the minister noted that the world is facing multiple challenges, with the effects of climate change becoming more evident. She stressed the urgent need for sustainable and resilient infrastructure, especially in the face of rising geopolitical tensions and debt burdens in many countries.
Sitharaman appreciated AIIB’s response during the COVID-19 pandemic and praised the bank for its client-centered approach, special funds to enhance client outreach, and its recent climate-focused financing policies. However, she pointed out that the G20 has highlighted the need for AIIB to scale up its efforts, both in terms of impact and reach.
Drawing from India’s experience, Sitharaman emphasized that a combination of large-scale physical infrastructure expansion and digital public infrastructure can drive continuous growth. With a strong foundation, India is now focusing more on urban infrastructure, e-mobility, and renewable energy.
In her closing remarks, Sitharaman assured AIIB of India’s full cooperation and support in transferring best practices from India and other Asian countries to low-income nations. She also appreciated AIIB’s rapid growth in lending operations over the last nine years.
In a meeting with AIIB President Jin Liqun, the Finance Minister commended the bank’s progress and suggested that AIIB should continue its client-focused approach, particularly helping low-income countries access financial resources through technical assistance and other non-financial services.
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