Recently, the Union Minister of Finance participated in the 6th Annual Meeting of the Board of Governors of Asian Infrastructure Investment Bank (AIIB).
- Appreciated AIIB’s prompt actions in providing financial support to Member Countries, including India, in their efforts to contain and combat Covid-19.
- Emphasised the importance of multilateral banks in supplementing countries’ efforts to cope with the Covid-19 crisis and the looming climate crisis.
- Need to explore investment opportunities in the creation and development of assets in social infrastructure sectors.
- To further intensify private sector capital mobilisation for inclusive and green development.
- To set up a Resident Board and Regional Offices to ensure accountability, transparency and quality of operations and investments.
Suggestion for India:
- It should strike a balance between ramping up physical infrastructure and the social infrastructure such as healthcare systems.
- It would look to fund both social as well as climate-resilient infrastructure in India in the coming years.
- It will align its operations with the goals of the Paris Agreement to cope with climate change.
- India and AIIB
- India was among the AIIB’s 57 founding members in 2016.
- It is also its second-largest shareholder (with 7.62% voting shares) after China (26.06%).
- It has received USD 4.35 billion from the Bank. This is the highest of any country, with the bank so far approving loans of USD 19.6 billion to support 87 projects in 24 countries.
SOURCE: THTE HINDU,THE ECONOMIC TIMES,MINT