BRICS key to global growth, Sitharaman urges for private capital boost

Union finance minister Nirmala Sitharaman on Wednesday said that multilateral development banks have a critical role in de-risking investments, improving project bankability and strengthening investor confidence to mobilise private capital at scale in BRICS member countries. The finance minister was speaking at a seminar in Jaipur on the role of the new development bank in mobilising private capital in member countries, while it (seminar) was also addressed by New Development Bank President Dilma Rousseff.
She said, BRICS economies, despite being major engines of global growth, face common structural challenges in mobilising private capital at scale and call for stronger, stable and predictable frameworks to encourage sustained private investment. Sharing India’s experience, FM Sitharaman said the government had strengthened the country’s infrastructure ecosystem through sustained public capital expenditure and complementary structural reforms. Public investment has expanded significantly over the past decade, she said, with resources directed towards highways, railways, ports, logistics networks, digital infrastructure and energy systems. 
The Finance Minister emphasised that public capital should act as a catalyst rather than a substitute for private investment. She highlighted several measures undertaken by the government to encourage private participation in infrastructure, including Viability Gap Funding (VGF) for financially constrained but socially desirable projects, the Hybrid Annuity Model (HAM) for balanced risk-sharing in road infrastructure and credit enhancement mechanisms to improve project bankability.
FM Sitharaman said the Union Budget 2026-27 had introduced several targeted measures to facilitate greater private-sector participation. These include the development of new Dedicated Freight Corridors and High-Speed Rail Corridors, operationalisation of new National Waterways and a Coastal Cargo Promotion Scheme. She said these measures were aimed at strengthening infrastructure capacity and creating opportunities for private investment.