India Proposes Innovative Financial Models for AIIB Collaborations

Finance Minister Nirmala Sitharaman advocated for innovative financial models during a meeting with AIIB officials, recommending India as a testing ground for these initiatives. She emphasized AIIB's investment in sectors like climate adaptation and energy security, while highlighting India's role in advancing governance reforms in multilateral development banks.

Finance Minister Nirmala Sitharaman has urged the Asian Infrastructure Investment Bank (AIIB) to enhance its provision of innovative financial models and to increase efforts in mobilizing private capital. During a meeting on Monday with AIIB's Board of Directors and senior representatives, she highlighted India as a prime testing ground for innovative financing models and technologies.

Sitharaman, who also serves as a Governor on the AIIB Board, advocated for investments in priority areas such as climate adaptation, infrastructure, energy security, and urban development. She assured AIIB of India's complete support and cooperation in scaling up efforts for private capital mobilization while incorporating finance plus and budget plus elements into project designs.

The Minister emphasized the need for continued collaboration among multilateral development banks, as recommended under India's G20 Presidency. She suggested utilizing India's expertise in digital transformation and disaster management, noting its potential benefit to vulnerable economies. The AIIB Board visit aimed to offer a comprehensive overview of the bank's investments and to engage with various stakeholders in India.

(With inputs from agencies.)