Union Minister for Finance and Corporate Affairs, Nirmala Sitharaman, held an impactful meeting on Monday with a delegation from the Asian Infrastructure Investment Bank (AIIB) Board of Directors in New Delhi. The gathering included 11 board members from nine different constituencies, senior AIIB management, and AIIB staff, who are currently visiting India to gain insights into the country’s development priorities and explore potential collaborations.
The visit by the AIIB Board aims to provide its members a comprehensive view of AIIB’s existing and planned investments across member countries, allowing the Board to engage directly with India’s government, private sector, and other stakeholders.
During the meeting, Finance Minister praised AIIB’s growth over its nine-year history and emphasized India’s stable macroeconomic landscape and advancements in digital public infrastructure. As a Governor on the AIIB Board, she urged the institution to expand investments in critical sectors such as climate adaptation, infrastructure development, energy security, and urban development to align with India’s upcoming reforms. She also highlighted the need to integrate “finance-plus” and “budget-plus” elements into AIIB’s project designs for enhanced impact.
The Minister underscored India’s leadership in digital transformation as an exemplary model for other countries aiming for inclusive growth through technology. She also pointed out India’s expertise in disaster management, which could provide valuable insights to other vulnerable economies.
Sitharaman proposed that AIIB develop mechanisms to share India’s sectoral best practices, knowledge, and technological advancements with other countries in similar positions. Additionally, she recommended that the bank focus on offering innovative financial tools, models, and on mobilizing private capital, assuring AIIB of India’s ongoing support. The Minister suggested that India could serve as a “sandbox” for piloting new financing models and technologies by AIIB.
The Finance Minister encouraged AIIB’s continued involvement in strengthening and reforming Multilateral Development Banks (MDBs), in line with recommendations from the Independent Expert Group established under India’s G20 Presidency. She highlighted the importance of MDBs working collaboratively as a cohesive system to achieve greater impact on a larger scale.
Sitharaman also reiterated India’s commitment to MDB governance reforms to ensure these institutions remain effective and inclusive, particularly for Low-Income Countries (LICs) that rely on MDB support.
Ahead of the meeting, the delegation visited the Regional Rapid Transit System (RRTS) project, a major transit initiative jointly funded by the Asian Development Bank (ADB), AIIB, and the New Development Bank (NDB). They will also tour project sites in Bengaluru and engage with key technology sector representatives. Additionally, the delegation took part in a roundtable with various multilateral and bilateral agencies and project leaders, fostering an exchange of ideas focused on India’s investment opportunities, developmental priorities, and operational challenges.
