Sitharaman Underlines BRICS' Growing Importance To The Global Economy
Sitharaman underlines BRICS economies' growing role in global growth.
Union Finance Minister Nirmala Sitharaman on Wednesday described BRICS economies as major engines of global growth while noting that member countries face common structural challenges in mobilising private capital on a large scale. Addressing a seminar on the role of the New Development Bank in mobilising private capital, Sitharaman emphasised the need for confidence, stability, predictability and credible long-term frameworks to encourage sustained private investment.
The seminar was held on the sidelines of the BRICS Finance Ministers' and Central Bank Governors' Meeting being hosted in Jaipur under India's chairship. Sitharaman stressed the role of multilateral development banks in reducing investment risks, improving the bankability of projects and strengthening investor confidence. She maintained that the challenge for BRICS economies was not simply the availability of capital, but creating conditions that encourage private investors to participate over the long term.
Sitharaman emphasised that the future of development finance would depend on partnerships between multilateral institutions, national governments and the private sector. Referring to India's experience, she noted that the government had strengthened the country's infrastructure ecosystem through sustained public capital expenditure and structural reforms. Public investment has supported the creation of assets across highways, railways, ports, logistics, digital infrastructure and energy networks.
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The Finance Minister stressed that public investment should function as a catalyst for private investment rather than replace it. She pointed to measures including viability gap funding for financially constrained but socially important projects, the hybrid annuity model for balanced risk-sharing in road infrastructure and credit enhancement mechanisms aimed at improving project bankability. Infrastructure Investment Trusts, she added, have also helped recycle capital and attract long-term institutional investors.
Sitharaman also referred to measures announced in the Union Budget 2026-27 to encourage private-sector participation. These include new dedicated rail freight corridors, high-speed rail corridors, operationalisation of additional National Waterways and a coastal cargo promotion scheme. She noted that such initiatives are intended to strengthen infrastructure and create further opportunities for private investment.
Economic Affairs Secretary Anuradha Thakur, in her welcome address, maintained that capital mobilisation cannot depend only on favourable economic conditions and must instead be supported by durable institutional frameworks. The seminar brought together senior policymakers, representatives of multilateral institutions, private-sector leaders, financial institutions, think tanks and academia from BRICS countries to discuss ways to strengthen long-term capital mobilisation and development financing.
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