Private Capital: A Catalyst for Sustainable Development

Finance Minister Nirmala Sitharaman underscored the urgency of private capital as a vital component for sustainable development. Speaking at the International Business Forum in Sevilla, Spain, she described private investment as a catalyst for unlocking capital and fostering innovation, essential for economic growth, according to an official statement.

Sitharaman noted the increasing importance of private capital amid volatile FDI flows and global uncertainty but highlighted the disproportionate allocation to low- and middle-income countries. Mobilizing private capital effectively demands overcoming investment barriers and aligning financial flows with developmental priorities, she stated.

The Minister advocated for coordinated action, robust domestic reform, and enhanced international cooperation to facilitate private investment. She highlighted the role of Multilateral Development Banks and Development Finance Institutions in enabling capital mobilization while addressing credit ratings and supporting MSMEs to drive inclusive growth.

(With inputs from agencies.)