Sitharaman asks AIIB to widen financing beyond physical infrastructure to AI, MSMEs and skilling

Finance Minister Nirmala Sitharaman on Tuesday urged the Asian Infrastructure Investment Bank (AIIB) to look beyond conventional physical infrastructure and expand its financing focus to emerging areas such as artificial intelligence, MSMEs and skilling.

Sitharaman made the suggestion during a meeting with AIIB President Zou Jiayi on the sidelines of the multilateral lender’s annual meeting in Doha. India is the second-largest shareholder in the Beijing-headquartered bank after China.

Beyond physical assets

The Finance Minister said AIIB could expand its financing approach to include newer forms of infrastructure focused on AI, MSMEs and skills development. She underlined the importance of smaller businesses to India’s economy and said assistance in adapting to AI and training workers could help strengthen the sector.

“The Union finance minister said AIIB could further expand beyond physical infrastructure financing to include newer infrastructure that focuses on AI, MSMEs, and skilling,” the Finance Ministry said.

The suggestion comes as development banks increasingly look at digital transformation and technology-enabled infrastructure alongside their traditional focus on roads, energy, urban development and other physical assets.

India backs expansion

Sitharaman congratulated AIIB on its performance during the first half of the year and conveyed India’s support for the bank’s 2027 budget plans and priority areas as it seeks to scale up operations.

At the same time, she stressed that the bank’s regional centrality should continue to remain a defining institutional characteristic and an important anchor of its mandate.

The two sides discussed AIIB’s pipeline of projects in India as well as its expanding global presence. India has been one of the bank’s major borrowers and has supported projects spanning transport, energy, urban infrastructure and other sectors.

Focus on MSMEs

Sitharaman’s emphasis on MSMEs and skills also reflects concerns over how smaller enterprises adapt to rapid technological change. Access to technology, workforce training and financing can determine how effectively such businesses integrate AI into production and services.

The government has separately been expanding AI-related skilling programmes in India. Its Skill India framework now includes training in emerging technologies such as artificial intelligence, machine learning, robotics, cloud computing, data analytics and cybersecurity.

Projects in India

During the meeting, Zou recalled her earlier visits to AIIB-supported project sites in Delhi and Meerut and said the bank would continue financing projects focused on people, urban development and environmental protection.

She also congratulated Sitharaman on the BRICS Leaders’ Summit in New Delhi. Both sides discussed the bank’s project pipeline in India and opportunities for further engagement as AIIB enters its second decade.

Second-largest shareholder

India is AIIB’s second-largest shareholder after China. According to the bank’s shareholding structure, China holds the largest voting share, followed by India, with Russia and Germany among the other major shareholders.

The bank began operations in Beijing in 2016 and has since expanded to 111 approved members. It has authorised capital of USD 100 billion and holds AAA ratings from major international credit rating agencies.

Bank enters second decade

The meeting came as AIIB held its 11th Annual Meeting in Doha under the theme “Tomorrow’s Infrastructure: Impact and Innovation”. The gathering marks the institution’s transition into its second decade and focuses on sustainable infrastructure, digital transformation, private capital mobilisation and regional connectivity.

In her opening remarks at the meeting, Zou said the bank’s next phase would focus on increasing its development impact while using innovation to adapt its business model and financial instruments.

Sitharaman’s proposal would widen that conversation further by treating AI adoption, human capital and the technological preparedness of smaller businesses as areas that could complement conventional infrastructure financing.