FM Nirmala Sitharaman urges AIIB to broaden investment in priority sectors

Finance Minister Nirmala Sitharaman at meeting with AIIB's Board of Directors in New Delhi (Image - Finance Ministry's X handle)

Asian Infrastructure Investment Bank (AIIB) should broaden its investment in priority sectors, such as climate adaptation and resilience, infrastructure development, energy security, urban development, and extend support for India’s next generation reforms, Finance Minister Nirmala Sitharaman said on November 11.

Sitharaman, who is also a governor on the AIIB Board, highlighted the importance of continually incorporating finance plus and budget plus elements in AIIB’s project design and implementation. She was speaking during a meeting of the AIIB Board of Directors in New Delhi.

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. India is the second largest shareholder and the institution’s largest client.

“AIIB should strive for greater provision of innovative financial tools and models and scale up its efforts for private capital mobilisation and assured the AIIB of India’s full support and cooperation in this regard and added that India could act as a sandbox for AIIB’s piloting of innovative financing models and technologies,” she said.

During her comments, Sitharaman said India’s experience of digital transformation can serve as a model for other countries looking to use digital solutions for inclusive growth, while vulnerable economies can also look at India’s experience of disaster management.

India has a lot to offer in terms of sectoral best practices and AIIB should develop an institutional mechanism to facilitate transfer of knowledge and technology from India to other similarly placed countries, she added.