AIIB meet: PM Modi says confidence in India’s economy rising, finding resources for infra a challenge

Prime Minister Narendra Modi on Tuesday addressed the third annual meeting of Asian Infrastructure Investment Bank (AIIB) in Mumbai and said that India and AIIB are both strongly committed to making economic growth more inclusive and sustainable.

The theme for this year’s meeting is “Mobilizing Finance for Infrastructure: Innovation and Collaboration.” 

Addressing the meet, Prime Minister Modi said, I believe that India and AIIB are both strongly committed to making economic growth more inclusive and sustainable. In India, we are applying novel Public Private Partnership models, Infrastructure Debt Funds, and Infrastructure Investment Trusts to fund infrastructure."

The Prime Minister also said that a multilateral development bank is a collaborative effort for better tomorrow. "Finding resources for infrastructure is a key challenge and AIIB play a crucial role in raising resources."

Stating that AIIB now has 87 members, Modi said that it has approved 25 projects in dozens of countries with $4 billion and it is a good beginning.

Modi also called upon AIIB to expand its financing from $4 bn to $40 Billion by 2020 and to $100 bn by 2025

Stating that global confidence in India’s economy is rising, Modi added, "Total FDI flows have increased steadily & India continues to be one of the top FDI destinations."

The Prime Minister also said that the government has set a target to construct capacity of 175 GW of renewable energy by the year 2022.

"A ‘New India’ is rising. It is an India that stands on the pillars of economic opportunity for all, knowledge economy, holistic development, and futuristic, resilient and digital infrastructure," Modi said.

Speaking at the meet, Union Minister Piyush Goyal said that a role of infrastructure is a core driver of growth and multilateral development bank needs to coordinate development finance and innovative financing instruments.

The minister also said that there's a need to develop faster processes for loan disbursement as India is leading emerging economy and favored investment destination.

Stating that inclusive growth is crucial, Goyal said, "Meeting of open minds and hearts for prosperity and development."

President Jin Liqun, in his opening address, said that Asia has become a global heavyweight. "Asia's economy has become a global heavyweight; Asian developing countries now account for 60% of global growth. Indeed, Asia is assuming leadership in new areas," he said.

Leaders from varied organizations and levels of government will be sharing ideas and experiences for creating a sustainable future through sound infrastructure investment.

Modi will also address a function organised by the BJP city unit to deliberate on Emergency and democratic values on Tuesday at Birla Matoshri auditorium in Mumbai.

The Prime Minister will apprise the industry leaders of the works being done by his administration and seek their inputs to increase investments.