"The bilateral talks between China and India on the matter relating to AIIB are in the preliminary stage," Minister of State for Finance Nirmala Sitharaman said in a written reply to the Lok Sabha.
She said China has invited India to be a part of or participate in the AIIB.
According to media reports, China had last year proposed setting up the AIIB with a capital base of USD 100 billion.
There are apprehensions among experts that AIIB would rival IMF, the World Bank and the Asian Development Bank (ADB).