The future of development finance lies in partnership, with multilateral institutions, national governments and the private sector bringing their distinct strengths to the table, Finance Minister Nirmala Sitharaman said on Wednesday.
Highlighting the role of multilateral development banks, Sitharaman said they are critical to de-risking investments, improving project bankability and strengthening investor confidence, all of which are essential to mobilising private capital at scale.
Sitharaman was 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.
Pointing to India’s experience, she said that sustained public capital expenditure and structural reforms have strengthened the country’s infrastructure ecosystem. Investments in highways, railways, ports, logistics, digital infrastructure and energy networks have helped create productive national assets while laying the foundation for greater private participation.
Sitharaman stressed that public capital should act as a catalyst rather than a substitute for private investment. Measures such as Viability Gap Funding, the Hybrid Annuity Model, credit enhancement mechanisms, Infrastructure Investment Trusts, the National Infrastructure Pipeline and PM Gati Shakti have been introduced to improve risk-sharing, project viability and long-term investor visibility.
She 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.
The Minister said BRICS economies are major engines of global growth but face common challenges in mobilising private capital. The issue, she noted, is not simply the availability of funds, but creating confidence, stability, predictability and credible long-term frameworks.
Speaking at the event, Economic Affairs Secretary Anuradha Thakur said the seminar was particularly relevant as development finance enters a phase where scale must be matched with resilience. She emphasised that capital mobilisation must rest on durable frameworks, where multilateral collaboration can create lasting value.