Business News | BRICS Nations Need Stronger Frameworks to Mobilise Private Capital at Scale: Nirmala Sitharaman

New Delhi [India], August 12 (ANI): BRICS economies need to build greater confidence, stability, predictability and credible long-term frameworks to unlock sustained private capital flows at scale, Union Finance Minister Nirmala Sitharaman said on Wednesday, highlighting the role of multilateral development banks in de-risking investments and improving project bankability.

Addressing a seminar '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' Meeting in Jaipur, Sitharaman said BRICS economies are major growth engines of the global economy but face common structural constraints in mobilising private capital.

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"The challenge is not merely the availability of capital, but the creation of confidence, stability, predictability, and credible long-term frameworks which are essential to unlock sustained private participation across member countries," the Finance Ministry said quoting the minister.

Sitharaman said multilateral development banks have a critical role in de-risking investments, enhancing the bankability of projects and strengthening investor confidence, thereby helping mobilise private capital at scale.

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Highlighting India's experience, the Finance Minister said the government has strengthened the country's infrastructure ecosystem through sustained public capital expenditure and complementary structural reforms.

Public investment has expanded significantly compared with a decade ago, with investments aimed at creating productive national assets across highways, railways, ports, logistics systems, digital infrastructure and energy networks, she said.

Sitharaman emphasised that public capital should act as a catalyst rather than a substitute for private investment. To support this approach, the government has introduced measures including Viability Gap Funding, the Hybrid Annuity Model, credit enhancement mechanisms, Infrastructure Investment Trusts, the National Infrastructure Pipeline and PM Gati Shakti.

She said the Union Budget 2026-27 has also introduced targeted measures to facilitate private sector investment, including new dedicated freight corridors, high-speed rail corridors, operationalisation of new national waterways and a Coastal Cargo Promotion Scheme.

The Finance Minister said the future of development finance lies in partnership, with multilateral institutions, national governments and the private sector bringing distinct strengths to the development process.

Earlier, Economic Affairs Secretary Anuradha Thakur said development finance is entering a phase where scale needs to be matched with resilience, adding that capital mobilisation must be anchored in durable frameworks rather than relying solely on favourable market conditions.

The seminar brought together senior policymakers, multilateral institutions and private-sector leaders, followed by a panel discussion involving representatives from BRICS countries, financial institutions, think tanks and academia. (ANI)

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