Nirmala Sitharaman Urges AIIB to Bolster Resilient Infrastructure Amid Global Challenges

Finance Minister Nirmala Sitharaman emphasized the need for resilient and sustainable infrastructure at the AIIB's Annual Meeting in Samarkand, citing climate change and geopolitical tensions. She urged AIIB to support nations with infrastructure financing, particularly low-income countries, and highlighted India's advancements in urban infrastructure and renewable energy.

Union Minister of Finance and Corporate Affairs, Nirmala Sitharaman, has stressed the urgency of developing sustainable and resilient infrastructure in the face of escalating global challenges such as climate change and geopolitical tensions. Addressing the Governors' Business Roundtable at the 9th Annual Meeting of the Board of Governors of the Asian Infrastructure Investment Bank (AIIB) in Samarkand, Sitharaman called for a strategic response to these issues.

In her speech titled 'Building Resilient Infrastructure for All,' Sitharaman outlined the undeniable impacts of climate change, highlighting the necessity for infrastructure capable of withstanding such pressures. She noted that geopolitical tensions and rising debt burdens are complicating the financing of essential infrastructure projects for many countries, thus placing additional responsibility on AIIB to assist these nations in achieving their development objectives.

Sitharaman acknowledged AIIB's client-centric approach, particularly appreciating its response to the COVID-19 pandemic through special funds aimed at enhancing client outreach. However, she asserted that more needs to be done in terms of both scale and impact, as detailed by the G20 framework. She emphasized that AIIB's contributions should extend beyond financial innovations to involve technical assistance and project preparation support, especially for low-income nations, boosting the bank's overall impact.

Underlining the importance of strategic partnerships, policy dialogue, and the exchange of global best practices, Sitharaman suggested these measures would amplify AIIB's influence on global infrastructure development. She spotlighted India's extensive infrastructure growth and the substantial multiplier effects of its digital public infrastructure (DPI). According to her, India's current focus on urban infrastructure, e-mobility, and renewable energy are pivotal for continued growth and resilience.

Sitharaman urged AIIB to help disseminate best practices from India and other Asian countries to low-income regions, allowing the bank to maintain its Asian identity while supporting global development. Concluding her address, she assured India's full cooperation and support for AIIB's transformative journey towards a resilient and inclusive future.

Sitharaman is on a five-day official visit to Uzbekistan, which began on Tuesday. Besides attending the AIIB's Annual Meeting in Samarkand, she will engage in bilateral meetings with counterparts from Uzbekistan, Qatar, China, and the AIIB President.

(With inputs from agencies.)