FM Sitharaman: MDBs Critical for De-risking Investments in BRICS

Jaipur, Aug 12 (PTI) Finance Minister Nirmala Sitharaman on Wednesday said 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.

Addressing a seminar on "The Role of the New Development Bank in Mobilising Private Capital in Member Countries" on the sidelines of the BRICS Finance Ministers' and Central Bank Governors' (FMCBG) Meeting here, Sitharaman said development finance must increasingly focus on partnerships between multilateral institutions, governments and the private sector.

The seminar was also addressed by New Development Bank President Dilma Rousseff.

Sitharaman said India had strengthened its infrastructure ecosystem through sustained public capital expenditure and structural reforms, with public investment expanding significantly over the past decade.

The investments have helped create productive national assets across highways, railways, ports, logistics systems, digital infrastructure and energy networks, she said.

The government believes public capital should act as a catalyst rather than a substitute for private investment, the finance minister said.

She highlighted several measures undertaken to facilitate private participation, including Viability Gap Funding (VGF), the Hybrid Annuity Model (HAM), credit enhancement mechanisms, Infrastructure Investment Trusts (InvITs), the National Infrastructure Pipeline and the PM Gati Shakti National Master Plan for multimodal connectivity.

Sitharaman also highlighted measures announced in the Union Budget 2026-27, including new dedicated freight corridors and high-speed rail corridors, operationalisation of new national waterways and a Coastal Cargo Promotion Scheme.


While BRICS economies are among the major growth engines of the global economy, they face common structural challenges in mobilising private capital at scale, she said.

"The challenge is not merely the availability of capital, but the creation of confidence, stability, predictability and credible long-term frameworks," a statement quoted Sitharaman as saying.

She said such frameworks were essential to unlock sustained private-sector participation across BRICS member countries.

"The future of development finance lies in partnership," the finance minister said, adding that multilateral institutions, national governments, and the private sector bring distinct strengths to the development process.

Earlier, Economic Affairs Secretary Anuradha Thakur said the seminar was particularly relevant as development finance entered a phase where scale needed to be matched with resilience.

Capital mobilisation cannot depend solely on favourable conditions and must instead be anchored in durable frameworks, she said.

The seminar brought together senior policymakers, representatives of multilateral institutions and private-sector leaders.

A panel discussion was held with Irdai Chairman Ajay Seth, NDB Vice-President Roman Serov, Alessandro Teixeira of Sertrading, Tencent Senior Advisor Yongping Zhai and Pankaj Sindwani of the Tata Capital Decarbonisation Fund, among others.

Representatives from BRICS countries, financial institutions, think tanks and academia also participated in the discussions.