Finance Minister Nirmala Sitharaman proposes Seven-Point Strategy to mobilise private capital for sustainable development | Current Affairs | Vision IAS
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Finance Minister Nirmala Sitharaman proposes Seven-Point Strategy to mobilise private capital for sustainable development

Posted 01 Jul 2025

2 min read

Seven Point Strategy was proposed by the Finance Minister while addressing the 4th International Conference on Financing for Development (FFD4) organised by the United Nations in Seville, Spain.

Seven-Point Strategy to Mobilise Private Capital

  • Strong domestic financial markets: Strengthen banking system and deepen capital markets to finance infrastructure and industry.  
  • Address perceived risk through Institutional Reforms: Establishing independent regulators, implementing transparent bidding processes, and improving ease of doing business. 
  • Create scale in investment opportunities: Establish well-prepared, de-risked and investment-ready project pipeline. 
  • Scale up blended finance: Leverage public and concessional finance to de-risk private investment and use innovative tools like sovereign green bonds, impact investment instruments etc.
  • Enabling Role of Multilateral Development Banks and Development Finance Institutions. 
  • Evolution of International Credit Rating Methodologies to reflect long-term resilience of Emerging Markets and Developing Economies. 
  • Unlocking capital at Grassroots Level that supports Micro, Small and Medium Enterprises (MSMEs).

Significance of Private Capital in Sustainable Development

  • Catalytic force: Unlocking capital, boosting productivity, fostering innovation and driving demand.
  • Closing finance gap: UNCTAD estimates an annual investment gap of US$2.5 trillion in critical sectors of education, health, climate change etc.
  • Improving Inclusion: Access to finance for underserved groups including women-led MSMEs and rural communities.
  • Tags :
  • Sustainable Development
  • Private Investment
  • Private Capital
  • Private Finance
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