Strengthening Ties: India and AIIB Focus on Infrastructure Growth

Finance Minister Sitharaman and AIIB President Zou Jiayi discussed expanding India-AIIB partnerships to boost infrastructure growth. Emphasizing investments in low-income nations, they explored collaboration on capital markets, project approvals, and setting up a regional AIIB office. Minister Sitharaman also met Canadian Finance Minister to enhance economic ties.

In the national capital, Union Finance Minister Nirmala Sitharaman and Zou Jiayi, the newly appointed President of the Asian Infrastructure Investment Bank (AIIB), engaged in discussions aimed at fortifying the India-AIIB partnership. As the representative of AIIB's second largest shareholder, Sitharaman stressed the importance of increasing investments in member nations, focusing specifically on low-income countries through innovative financial tools.

Sitharaman highlighted India's infrastructure-led growth commitment outlined in the Union Budget. The dialogue explored opportunities for collaboration with AIIB, including early upstream services in India's infrastructure sector. Discussions also covered AIIB's role in developing capital markets, expediting project approvals in Uttarakhand and Himachal Pradesh, and the potential establishment of a regional office in India, reflecting AIIB's engagement scale in the country.

The AIIB commenced its operations with 57 founding members in 2016, expanding to 103 by 2020, representing 79% of the global population and 65% of global GDP. Previously, Minister Sitharaman met with Francois-Philippe Champagne, Canada's Minister of Finance, initiating discussions on cooperation in investment, fintech, and related sectors. Both ministers voiced the need for an early India-Canada Economic and Financial Dialogue to enhance their bilateral economic cooperation.