Minister Nirmala Sitharaman on New Development Bank’s Role in Mobilising Private Capital, Jaipur

Overview On 12 August 2026 , Union Finance Minister Nirmala Sitharaman delivered the keynote address at a seminar in Jaipur on the theme “The Role of the New Development Bank in Mobilising Private Capital in Member Countries”. The event was held alongside the BRICS Finance Ministers’ and Central Bank Governors’ meeting. Key Developments The minister highlighted the importance of Multilateral Development Banks in de‑risking projects and building investor confidence. She cited India’s infrastructure push through public spending and reforms such as Viability Gap Funding (VGF) , Hybrid Annuity Model (HAM) , and credit‑enhancement mechanisms. New financing structures like Infrastructure Investment Trusts (InvITs) and the National Infrastructure Pipeline (NIP) were highlighted as catalysts for private participation. The Union Budget 2026‑27 announced sector‑specific measures: Dedicated Freight Corridors , High‑Speed Rail Corridors , operationalisation of new National Waterways , and a Coastal Cargo Promotion Scheme . Important Facts India’s strategy treats public capital as a catalyst, not a substitute, for private investment. The minister stressed that confidence‑building measures, stable policy frameworks, and long‑term visibility are essential for attracting private funds across BRICS nations. She also referred to the PM Gati Shakti master plan, which aims to streamline project approvals and reduce implementation delays. UPSC Relevance Understanding the role of NDB and other MDBs is crucial for GS‑3 (Economy) questions on development finance, PPP models, and infrastructure funding. The highlighted schemes—VGF, HAM, InvITs, NIP, and PM Gati Shakti—are examples of policy tools that aspirants should link to concepts of fiscal policy, public‑private partnership, and project implementation challenges. Way Forward Future seminars should focus on creating resilient financing frameworks that can withstand economic shocks. Strengthening coordination among BRICS members, standardising risk‑mitigation instruments, and expanding the role of NDB can accelerate private capital mobilisation. For UPSC preparation, candidates should track upcoming budget allocations, monitor the performance of the newly announced corridors, and study how multilateral institutions influence India’s infrastructure roadmap.