At BRICS Meet, FM Calls on Multilateral Banks to Bridge Private Investment Gap

New Delhi, Aug 12 (KNN) Union Finance and Corporate Affairs Minister Nirmala Sitharaman highlighted the need for stronger financial and policy frameworks to support private capital mobilisation across BRICS economies.

She made the remarks while delivering the keynote address at a seminar on “The Role of the New Development Bank in Mobilising Private Capital in Member Countries”, held on the sidelines of the BRICS Finance Ministers’ and Central Bank Governors’ Meeting in Jaipur.

Sitharaman said Multilateral Development Banks can help mobilise private investment by de-risking projects, improving their bankability and strengthening investor confidence.

On India’s experience, she said sustained public capital expenditure and structural reforms have strengthened the country’s infrastructure ecosystem across highways, railways, ports, logistics, digital infrastructure and energy networks.

The Finance Minister said public investment should serve as a catalyst for private investment. She cited measures including Viability Gap Funding, the Hybrid Annuity Model, credit enhancement mechanisms, Infrastructure Investment Trusts, the National Infrastructure Pipeline and PM Gati Shakti.

She also highlighted infrastructure measures announced in the Union Budget 2026-27, including new Dedicated Freight Corridors, high-speed rail corridors, new National Waterways and a Coastal Cargo Promotion Scheme.

Sitharaman said BRICS economies face common structural constraints in mobilising private capital at scale. She noted that the challenge involves not only capital availability but also creating stable, predictable and credible long-term frameworks for private investment.

Earlier, Economic Affairs Secretary Anuradha Thakur said development finance needs frameworks that combine scale with resilience and provide a stable basis for capital mobilisation.

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

(KNN Bureau)