Jaipur: Union Finance Minister Nirmala Sitharaman Wednesday emphasised the need for BRICS countries to create a more favourable environment for private investment. She pointed out that these emerging economies were grappling with similar challenges in attracting substantial private capital.The Union finance minister was 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’ meeting in Jaipur.Sitharaman stressed that to draw in sustained private investment, there must be increased confidence, stability, predictability, and long-term frameworks. She highlighted the important role of multilateral development banks in minimising risks associated with investments and boosting trust among investors.Drawing on India’s own experiences, Sitharaman illustrated how the Indian govt successfully enhanced its infrastructure over the last decade through significant public spending and reform initiatives. She noted improvements in various sectors, including highways, railways, ports, and digital infrastructure, all of which have laid the groundwork for private investments.To ensure that public investments act as a catalyst rather than a replacement for private capital, she cited several strategies, including financial support for economically viable yet socially important projects, balanced risk-sharing in road infrastructure, and increased investment transparency through policies like Infrastructure Investment Trusts.Sitharaman said the real challenge for BRICS nations goes beyond simply having enough financial resources; it involves creating conditions that allow for large-scale investment deployment. “The future of development finance lies in partnership,” she stated, highlighting the need for collaboration between govts, private sectors, and multilateral institutions.The seminar featured a special address from New Development Bank president Dilma Rousseff, alongside discussions with policymakers and industry leaders aimed at fostering private participation in economic development. Economic Affairs Secretary Anuradha Thakur and FICCI Senior Vice-President Vijay Sankar also participated.
