JAIPUR — Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman delivered the keynote address at a seminar titled “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 (FMCBG) meeting in Jaipur on Wednesday.
The high-level event brought together global policymakers, multilateral institutions, and industry leaders—including New Development Bank (NDB) President H.E. Ms. Dilma Rousseff, Department of Economic Affairs (DEA) Secretary Ms. Anuradha Thakur, and senior representatives from BRICS nations.
Key Takeaways from the Keynote Address
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Role of MDBs: The Finance Minister stressed that Multilateral Development Banks (MDBs) like the NDB must actively de-risk projects, enhance bankability, and boost investor confidence to unlock private capital at scale across BRICS economies.
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Public Investment as a Catalyst: Smt. Sitharaman highlighted that public capital expenditure should act as a catalyst rather than a replacement for private investment, citing India’s structural reforms in infrastructure across highways, energy networks, and digital systems.
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Core Institutional Mechanisms: Highlighted existing policy tools enabling private participation in India, including Viability Gap Funding (VGF), the Hybrid Annuity Model (HAM), Infrastructure Investment Trusts (InvITs), and the PM Gati Shakti National Master Plan.
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Budget 2026-27 Priorities: Reiterated new infrastructure initiatives announced in the Union Budget, such as dedicated freight corridors, new high-speed rail corridors, operationalization of national waterways, and the Coastal Cargo Promotion Scheme.
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Structural Challenges: Identified predictability, regulatory stability, and credible long-term frameworks as essential conditions for overcoming common capital constraints faced by emerging BRICS economies.
