Prime Minister Narendra Modi said he expects the Asian Infrastructure Investment Bank (AIIB) to increase it’s financing to $40 billion by 2020 and to $100 billion by 2025 from $ 4 billion now.
While inaugurating the third AIIB annual meeting on Tuesday, Mr Modi said “With 87 members and a committed capital stock of 100 billion dollars, the AIIB is surely going to play a critical role in Asia.”
Mr. Modi said the Indian economy is in a bright spot with strong macroeconomic fundamentals like lower inflation, over $400 billion foreign exchange reserves and robust foreign direct investment flows.
Noting that investors prefer political stability and a supportive regulatory framework in the regions they want to invest, Mr. Modi said India fits the bill.
“From the point 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,” he said.
He also pointed out various reform measures initiated by the government like introduction of the Goods and Services Tax, housing for all by 2020, among others.
The use of new technologies in housing construction will have an added advantage, if tried in India, due to its requirement for 10 million houses, more than that of many countries put together, he noted.