Indian growth resilient despite exogenous threat: Finance Minister

Finance minister Nirmala Sitharaman on Wednesday said that the policy measures and reforms taken by the government have ensured resilience in the Indian economy despite exogenous threats. 

Addressing the seventh annual meeting of the board of governors of Asian Infrastructure Investment Bank (AIIB), Sitharaman said, “Despite exogenous threats, India’s well-targeted policy mix, accompanied by major structural reforms and sound external balance sheet, have aided its growth to remain resilient.”  

“The Finance Minister emphasised that India has embarked on the path of a self-reliant economy and therefore has been successful in mitigating the negative effects of the pandemic. Smt. Sitharaman underscored the remarkable progress India has made through its digitalisation mission, utilising technology to facilitate social protection and boost financial inclusion,” a release from the ministry of finance said.

While appreciating the AIIB for its continued commitment and dedication to assist members and for providing high-quality development finance, Sitharaman also pointed out that in order to ensure meaningful impact is achieved and resources are not scattered in multiple areas, AIIB needs to scale-up investments in key priority areas including clean energy and energy efficiency, disaster resilient infrastructure, social infrastructure with a special focus on education and health, and digital infrastructure.

The Finance Minister advised that the bank should not only play a catalytic role in mobilising diverse private sector resources but also explore mechanisms to augment its own resources, including through early action on the recommendations of G20’s Expert Panel’s Report on the MDB’s Capital Adequacy Framework (CAF).

“Beyond its financial support, AIIB should work towards expanding the scope of its mid-stream and upstream engagement activities such as increased technical assistance to help clients translate strategies into investment plans,” Sitharaman added.

It may be noted that India is a founding member and the second-largest shareholder in AIIB. India also has the largest project portfolio within AIIB. The theme of this year’s Annual Meeting was “Sustainable Infrastructure Toward a Connected World”.