Sitharaman calls for stronger, predictable frameworks to unlock private capital across BRICS
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Finance Minister Nirmala Sitharaman on Wednesday called for stronger, stable and predictable frameworks to unlock private capital at scale across BRICS economies, saying multilateral development banks (MDBs) have a critical role in de-risking investments, improving project bankability and strengthening investor confidence.
Addressing a seminar on “The Role of the New Development Bank in Mobilising Private Capital in Member Countries” on the sidelines of the BRICS Finance Ministers and Central Bank Governors (FMCBG) Meeting in Jaipur, Sitharaman said BRICS economies, despite being major engines of global growth, face common structural challenges in mobilising private capital at scale.
MDBs key to de-risking investments, says Sitharaman
“The challenge is not merely the availability of capital, but the creation of confidence, stability, predictability and credible long-term frameworks,” Sitharaman said, stressing that such conditions were essential to unlock sustained private-sector participation across BRICS member countries.
She said MDBs can play a critical role in bridging the gap between capital availability and investable projects by reducing investment risks, improving project bankability and strengthening investor confidence. This, she said, would enable private capital to flow into development projects at scale.
Sitharaman also said development finance must increasingly focus on partnerships between multilateral institutions, governments and the private sector.
“The future of development finance lies in partnership,” she said, adding that multilateral institutions, national governments and the private sector bring distinct strengths to the development process.
Public capital must catalyse, not replace, private investment
Sharing India's experience, Sitharaman said the country had strengthened its infrastructure ecosystem through sustained public capital expenditure and complementary structural reforms. Public investment has expanded significantly over the past decade, helping create productive national assets across highways, railways, ports, logistics systems, digital infrastructure and energy networks.
The Finance Minister emphasised that public capital should act as a catalyst rather than a substitute for private investment. She highlighted measures such as Viability Gap Funding (VGF) for financially constrained but socially desirable projects, the Hybrid Annuity Model (HAM) for balanced risk-sharing in road infrastructure and credit enhancement mechanisms to improve project bankability.
She also pointed to Infrastructure Investment Trusts (InvITs) as a mechanism to recycle capital and attract long-term institutional investors, while the National Infrastructure Pipeline provides greater visibility on long-term infrastructure opportunities. The PM Gati Shakti National Master Plan for multimodal connectivity, she said, has further improved coordination and efficiency in infrastructure development.
Budget 2026-27 seeks to widen infrastructure investment opportunities
Sitharaman also highlighted measures announced in the Union Budget 2026-27, including new Dedicated Freight Corridors and High-Speed Rail Corridors, the operationalisation of new National Waterways and a Coastal Cargo Promotion Scheme.
She said these initiatives were aimed at strengthening infrastructure capacity while creating opportunities for greater private-sector participation.
Earlier, Economic Affairs Secretary Anuradha Thakur said the seminar was particularly relevant as development finance entered a phase where greater scale needed to be matched with resilience. Capital mobilisation, she said, cannot depend solely on favourable market conditions and must instead be anchored in durable institutional and policy frameworks.
The seminar was also addressed by New Development Bank President Dilma Rousseff and brought together senior policymakers, multilateral institutions and private-sector representatives from BRICS countries.