India focused on urban infrastructure, e-mobility, and renewable energy for growth: FM Sitharaman

Union Minister of Finance and Corporate Affairs, Nirmala Sitharaman, emphasized the urgent need for sustainable and resilient infrastructure, especially in light of the global challenges posed by climate change and geopolitical tensions.

The minister highlighted this during her address at the Governors’ Business Roundtable at the 9th Annual Meeting of the Board of Governors of the Asian Infrastructure Investment Bank (AIIB) in Samarkand on Wednesday.

Speaking on the theme “Building Resilient Infrastructure for All,” Sitharaman highlighted how climate change has become an undeniable force, necessitating the creation of infrastructure that can withstand its impacts.

She pointed out that geopolitical tensions and rising debt burdens are making it increasingly difficult for many countries to finance necessary infrastructure projects. This, in turn, places added responsibility on AIIB to step up and support these nations in their development goals.

“FM Smt. @nsitharaman noted that geopolitical tensions and unsustainable debt burden is limiting ability of many countries to finance this infrastructure, thus putting the onus on @AIIB_Offical” said a social media post on ‘X’ by Finance Ministry.

Sitharaman commended AIIB for its client-centric approach and its agility in responding to the COVID-19 pandemic, noting its role in executing several special funds to deepen client outreach. She also praised AIIB’s recent initiatives, such as climate-focused policy-based financing.

However, the Finance Minister asserted that much more needs to be done, both in terms of scale and impact, as outlined by the G20 framework.

She stressed that AIIB’s role should extend beyond financial innovations to include a range of non-lending services such as technical assistance and project preparation support, particularly for low-income countries. This, according to Sitharaman, would significantly enhance the bank’s impact.

She also emphasized the importance of fostering strategic partnerships, engaging in policy dialogue, and promoting the exchange of global best practices, noting that these efforts would contribute to AIIB’s goal of maximizing its influence on global infrastructure development.

Highlighting India, Sitharaman spoke about the country’s large-scale infrastructure expansion and the significant multiplier effects of its digital public infrastructure (DPI).

She noted that India is now focused on urban infrastructure, e-mobility, and renewable energy, which serve as key drivers for sustained growth and resilience. Sitharaman urged AIIB to facilitate the transfer of such best practices from India and other Asian countries to low-income regions while maintaining its Asian identity.

The Finance Minister concluded by assuring India’s full cooperation and support for AIIB in its transformative journey towards a resilient and inclusive future.

Sitharaman is on a five-day official visit to Uzbekistan started on Tuesday, with officials from the Ministry of Finance. During the visit, Sitharaman is attending the Ninth Annual Meeting of Board of Governors of Asian Infrastructure Investment Bank (AIIB) in Samarkand, besides other important bilateral meetings with her counterparts from Uzbekistan, Qatar, China, and AIIB President.