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India Inc today welcomed the country’s participation in the newly—established Asia Infrastructure Investment Bank (AIIB) saying it will help to leverage badly needed funds for infrastructure development.
The moot point is that large economy like India really needs financing badly as it requires over a trillion USD for infrastructure development, A Didar Singh, Secretary General of the Federation of Indian Chambers of Commerce and Industry (FICCI) said today.
India along 20 other countries signed the Memorandum of Understanding (MoU) to be its founding member.
“It is a very positive development in the sense that it opens up more borrowing opportunities. As another window of financing we welcome it,” Singh told PTI.
“There is tremendous requirement of funding in India for the a trillion USD infrastructure development. It is not possible for the Indian banking sector to manage that kind of investment,” despite the presence of Asian Development Bank (ADB) and other multilateral financing bodies.
“More is required beyond that. Therefore, if we get support from the BRICS Development Bank and AIIB offer further options and availability of finance which we need to tap into,” he said.
Singh, who is here to attend a separate event, said it will be mostly private sector which will access such funding.
“They will do it on terms favourable, transparent and good for them.”
But bank need to function on certain norms of governance, standards and transparency, he said.
Singh said India should access investments from China as it is plush with funds.
“China is a large economy with trade and manufacturing prowess. It also has funds which we have to recognise.
Therefore, businesses in India can leverage that funding also it will be one more addition to technology and market related relations.”
India along with 20 other countries today signed an agreement to become founding members of the China—backed AIIB to aid the infrastructure development in the Asian region and reduce the dependence on Western—dominated World Bank and IMF.
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