AIIB conclave 2018: Prime Minister Narendra Modi on Tuesday inaugurated the third annual meeting of the Asian Infrastructure Investment Bank (AIIB) in Mumbai.
AIIB conclave 2018: Prime Minister Narendra Modi on Tuesday inaugurated the third annual meeting of the Asian Infrastructure Investment Bank (AIIB) in Mumbai. The Asian Infrastructure Investment Bank (AIIB) and the Department of Economic Affairs are jointly hosting the two-day meet that began on 25 June. The theme for this year’s meeting is ‘Mobilising Finance for Infrastructure: Innovation and Collaboration’. Speaking at the session, Prime Minister Narendra Modi said India is happy to have opportunity to deepen engagement with the China-led multilateral bank. He also discussed how Indian economy grew stronger over the years.
Here are the 11 highlights from PM Modi’s speech:
Inclusive economic growth
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.
Most investor friendly destination
India is one of the most investor-friendly economies in the world. Investors look for growth and macro-economic stability. They want political stability and a supportive regulatory framework to ensure protection of their investment.
From the perspective of larger scale of operations and higher value addition, an investor is also attracted by a large domestic market size, availability of skilled labour and good physical infrastructure. On each of these parameters India is well placed and has performed very well.
India has emerged as a bright spot in the global economy.
Affordable interest rates
Interest rates offered by AIIB need to be affordable and sustainable.
Finding resources for infrastructure creation is a challenge and AIIB can play a crucial role in raising resources.
Our macroeconomic fundamentals are strong with stable prices, a robust external sector and a fiscal situation firmly in control. Despite rising oil prices, inflation is within the mandated range.
The government is firmly committed to the path of fiscal consolidation. Government debt as percentage of GDP is consistently declining. India has achieved a rating upgrade after a long wait.
Robust foreign exchange reserves
The external sector remains robust. Our foreign exchange reserves of more than $400 billion dollars provide us adequate cushion. Global confidence in India’s economy is rising. Total FDI flows have increased steadily and India continues to be one of the top FDI destinations.
Low risk economy
From the point of a foreign investor, India counts as an extremely low risk political economy. We have simplified rules and regulations for businesses & undertaken bold reforms. We have provided investors an environment which is efficient, transparent, reliable and predictable.
We have set a target to construct capacity of 175 GW of renewable energy by the year 2022. Of this, the solar energy capacity will amount to 100 GW. We have added more capacity to renewable energy than conventional energy in 2017.