The meeting brought together leaders from all types of organizations and levels of government and gave them an opportunity to share their thoughts, experiences, and ideas for developing a sustainable future through sound infrastructure investment.
Prime Minister Narendra Modi also attended the ATTB meeting. While speaking at a third annual meeting of the Asian Infrastructure Investment Bank on Tuesday, PM Modi talked about India’s economy and budgetary matters. He said that AIIB can play an important role in raising resources.
While addressing the governors of AIIB, Modi said that the BJP government is committed to fiscal consolidation. (fiscal consolidation is a process where the government budgetary health is getting improved and indicated by reducing the deficit).
He said that our macroeconomic fundamentals are pretty strong and the prices are also stable. The external sector and fiscal situation are firmly in control.
“And it is to be noted that despite raising the prices of oil, inflation is within the mandated range,” he said.
The government is firmly committed to the path of fiscal consolidation. He said,
“India has achieved a rating upgrade after a long wait,” Modi said. He further added that India has grown amazingly in the global economy, driving global growth with a $2.6-trillion GDP.
No wonder, the global confidence in India’s economy is rising year by year. Total FDI flows have increased gradually and India continues to be one of the top FDI destinations.
While speaking PM Modi also asked the AIIB to keep their interest rates affordable and manageable except for expanding its loan book by ten times to $40 billion by 2020 and $100 billion by 2025.
“India is one of the most investor-friendly economies in the world”, said Modi. Basically, the investors are looking for growth and macroeconomic stability. They want security, supportive regulatory framework and political stability in order to keep their investment protected.
“There are some foreign investors who think that India is an extremely low-risk political economy. We have provided investors a transparent, efficient, reliable and predictable environment,” said the Prime Minister.
In the summit, the Union Minister Piyush Goyal had also put his point and said that infrastructure is a main component that can drive growth.
“A multilateral development bank needs to coordinate development finance and innovative financing instruments,” he said.
He also added that India is a leading economy and a great destination for investment so it is needed to develop a faster and easier process for disbursement.