Sitharaman Champions Private Capital Mobilisation for Sustainable Development at Global Summit in Spain
- Call for Private Investment: FM Sitharaman urged greater mobilisation of private capital for sustainable development, especially in low and middle-income countries.
- India's Reform Success: She highlighted India’s regulatory reforms, ease of doing business, and renewable energy growth as a model for attracting global investment.
- Global Engagements: Held bilateral meetings with leaders from New Zealand and Germany to enhance cooperation in green energy, education, and financial services.
Union Minister for Finance and Corporate Affairs Nirmala Sitharaman, currently on an official visit to Spain, Portugal, and Brazil, delivered a compelling address at the International Business Forum Leadership Summit in Seville. Speaking on the theme 'From FFD4 Outcome to Implementation: Unlocking the Potential of Private Capital for Sustainable Development', the Finance Minister urged the global community to accelerate private capital mobilisation to meet sustainable development goals (SDGs).
Addressing global leaders and international investors, Sitharaman noted that while private investment has seen a positive trend in recent years fueled by both innovative financial instruments and traditional capital sources the pace remains inadequate. “Private capital mobilisation remains significantly below what is required”, she said in a social media post, emphasizing that low and middle-income countries receive a disproportionately small share of this investment.
The Finance Minister underscored the need for targeted global efforts to break down investment barriers and ensure better alignment between financial flows and development priorities. She highlighted India’s own journey as a case study in overcoming perceived investment risks, particularly in emerging markets.
“India has addressed this challenge by establishing independent regulators, implementing transparent bidding processes, standardising contracts, and improving the ease of doing business. These reforms have significantly enhanced investor confidence and reduced transaction costs”, Sitharaman stated.
She also drew attention to the critical role of robust domestic financial systems in mobilising private capital. India, she said, has focused on strengthening its banking sector and deepening capital markets to support large-scale financing needs in infrastructure and industry. “Our regulatory frameworks have evolved with market needs balancing investor protection with innovation and flexibility creating a more conducive environment for long-term investment”, she added.
One of the most significant achievements, according to Sitharaman, has been India’s transformation in the renewable energy sector. From a modest 2.8 GW of installed solar energy capacity in 2014, the country now boasts over 110 GW. This transformation was driven by national targets, streamlined procurement processes, and government-backed risk mitigation frameworks. She noted that this model successfully attracted global institutional investors, including pension and sovereign wealth funds.
On the sidelines of the summit, the Finance Minister held a series of bilateral meetings with global leaders. She met Shane Reti, New Zealand’s Minister of Science, Innovation and Technology, Universities, Statistics, and Pacific Peoples. The two ministers discussed potential collaborations in defence, education, technology, and agriculture, reaffirming shared democratic values and strong people-to-people ties between India and New Zealand.
Sitharaman also highlighted India’s International Financial Services Centre at GIFT City, presenting investment opportunities in sectors such as banking, bullion exchange, capital markets, FinTech, insurance, and reinsurance. She spoke about the growing educational links between India and New Zealand, noting the significant number of Indian students pursuing higher education there.
In another bilateral meeting, Sitharaman held talks with Reem Alabali-Radovan, Germany’s Federal Minister for Economic Cooperation and Development. She congratulated Minister Alabali-Radovan on her new role and discussed advancing the India-Germany Green and Sustainable Development Partnership. Their discussion covered areas such as green energy, urban mobility, sustainable urban development, and ecological livelihoods. Minister Alabali-Radovan expressed her intent to deepen bilateral engagement with India.
Sitharaman is leading an Indian delegation from the Department of Economic Affairs during the official visit from June 30 to July 5. Her itinerary includes a visit to Lisbon, Portugal, where she is scheduled to meet the Portuguese Finance Minister and engage with Indian diaspora members and investors.
In Rio de Janeiro, Brazil, Sitharaman will address the 10th Annual Meeting of the New Development Bank (NDB) as India’s Governor. She will also take part in the BRICS Finance Ministers and Central Bank Governors Meeting and is expected to hold bilateral talks with her counterparts from Brazil, China, Indonesia, and Russia.
