India wants ADB to increase equity base to strengthen lending operations

India wants the multilateral funding agency ADB to increase its equity base through another round of general capital increase with a view to strengthening its lending operations.

Speaking at the 55th Annual Meeting of ADB, India's Economic Affairs Secretary Ajay Seth said rising commodity prices are endangering food security.

"We are meeting in the backdrop of tightening of monetary policies, slowdown of the global economy, supply-chain disruptions, unprecedented inflation and rise in commodities prices endangering food security and livelihoods and the developmental gains made so far," Seth said, the Alternate Governor for the ADB's annual meeting.

Fiscal space has now considerably reduced and the surge in public debt has limited the space for additional borrowing and worsened debt vulnerabilities, he said.

Increase in private sector operations is the need of the hour to leverage the limited capital of ADB, Seth said developing more affordable and innovative financing solutions wil