Nirmala Sitharaman Calls for Stronger BRICS Private Capital Frameworks

Finance Minister Nirmala Sitharaman advocated for stronger, stable, and predictable policy frameworks to attract private capital across BRICS nations. Her remarks came during a seminar at the BRICS Finance Ministers and Central Bank Governors (FMCBG) Meeting in Jaipur.

Sitharaman highlighted that multilateral development banks (MDBs) are crucial for reducing investment risks and enhancing project bankability. This approach aims to boost investor confidence and facilitate significant private capital flow into various development projects.

Mobilizing Private Capital: The Core Challenge

The Finance Minister emphasized that the primary challenge is not a lack of capital, but rather establishing confidence and credible long-term frameworks for investment. She stressed the importance of collaborative partnerships involving multilateral institutions, governments, and the private sector in development finance.

These partnerships are essential because each entity contributes unique strengths to the ecosystem. Such a combined effort can effectively de-risk investments and improve project viability.

India’s Strategic Approach to Infrastructure

Sharing India’s experience, Sitharaman detailed how consistent public capital expenditure and structural reforms have significantly bolstered the nation’s infrastructure. This includes substantial public investment across various critical sectors.

• Highways and Railways
• Ports and Logistics networks
• Digital infrastructure
• Energy networks

She underscored that public capital should serve as a catalyst for private investment, not a replacement. Several mechanisms have been deployed to encourage private sector participation.

• Viability Gap Funding (VGF)
• Hybrid Annuity Model (HAM) for risk-sharing in road projects
• Credit enhancement mechanisms
• Infrastructure Investment Trusts (InvITs) for capital recycling
• The National Infrastructure Pipeline (NIP) for project visibility
• The PM Gati Shakti National Master Plan for improved coordination

Future Infrastructure Initiatives and Policy Resilience

Looking ahead, Sitharaman outlined initiatives from the Union Budget 2026-27 aimed at further enhancing infrastructure and creating private-sector opportunities. These plans include new Dedicated Freight Corridors and High-Speed Rail Corridors.

• Operationalization of new National Waterways
• A Coastal Cargo Promotion Scheme

Economic Affairs Secretary Anuradha Thakur reinforced this perspective, stating that development finance demands resilience and durable institutional and policy frameworks. This goes beyond merely favorable market conditions.

New Development Bank President Dilma Rousseff also addressed the seminar, which convened senior policymakers and private-sector representatives from member countries. The consensus highlighted the critical need for stable policy environments to unlock private investment potential across the BRICS bloc.