Nirmala Sitharaman Hosts AIIB Delegation, Advocates for Climate Resilience, Innovative Financial Models

Minister Sitharaman encouraged AIIB to act as a bridge for knowledge and technology transfer, facilitating India's best practices in digital solutions and disaster response management to benefit other countries.

In a strategic meeting in New Delhi, Union Finance and Corporate Affairs Minister Smt. Nirmala Sitharaman hosted a delegation from the Asian Infrastructure Investment Bank (AIIB), comprising 11 Board Directors from nine different constituencies, along with senior AIIB management and staff. This delegation’s visit to India aims to deepen the AIIB’s understanding of its member countries' ongoing and future investments, fostering an opportunity to engage with government leaders, private sector entities, and other stakeholders.

Commending AIIB’s substantial growth over the past nine years, Minister Sitharaman highlighted India’s robust macroeconomic stability and its pioneering digital public infrastructure, which have positioned the country as a model for inclusive growth. She noted that India’s digital transformation and disaster management expertise offer valuable insights for other countries striving for similar advancements.

During the discussions, the Finance Minister urged the AIIB to broaden its focus, particularly toward investments in climate resilience, infrastructure development, urbanization, energy security, and next-generation reform initiatives in India. She also stressed the importance of integrating “finance-plus” and “budget-plus” elements in project planning, aligning with India’s evolving priorities.

Minister Sitharaman encouraged AIIB to act as a bridge for knowledge and technology transfer, facilitating India's best practices in digital solutions and disaster response management to benefit other countries. She advocated for the AIIB’s greater use of innovative financing models, private capital mobilization, and encouraged the institution to consider India as a sandbox environment for piloting new financing solutions.

The Finance Minister reaffirmed India’s commitment to governance reforms in multilateral development banks (MDBs), aligning with India’s G20 Presidency priorities and recommendations from the Independent Expert Group. These recommendations underscore the importance of MDBs working collaboratively as a system to address global challenges more effectively.

The delegation’s visit also included a site tour of the Regional Rapid Transit System (RRTS) project, jointly funded by the Asian Development Bank (ADB), AIIB, and the New Development Bank (NDB), offering insights into India's transportation modernization efforts. Further engagements in Bengaluru with technology sector leaders and a roundtable discussion with multilateral and bilateral agencies will provide the AIIB delegation with a broader understanding of India’s development priorities, investment landscape, and operational challenges. This robust exchange of ideas and experiences will pave the way for new investment collaborations and sustainable growth in India.

This meeting reflects India’s steadfast commitment to working with MDBs to ensure these institutions are prepared to tackle current challenges, emphasizing inclusivity and responsiveness to the needs of all members, particularly Low-Income Countries (LICs).