logo
Private capital crucial for sustainable development: FM Nirmala Sitharaman

Private capital crucial for sustainable development: FM Nirmala Sitharaman

Time of India30-06-2025
Live Events
(You can now subscribe to our
(You can now subscribe to our Economic Times WhatsApp channel
Finance Minister Nirmala Sitharaman on Monday underlined the crucial role of private capital in driving sustainable development , saying it is both an urgent necessity and a significant opportunity.Addressing the Leadership Summit of the International Business Forum at Sevilla, Spain, she said that private investment is a catalytic force, unlocking capital, boosting productivity, fostering innovation, and introducing technological rigour -- all essential for inclusive, sustainable economic growth, according to an official statement.In an era of volatile FDI flows and mounting global uncertainty, she said private capital has emerged as an increasingly important source of development finance."In recent years, we have witnessed encouraging growth in private investment, supported by the rise of innovative financial instruments alongside traditional sources. However, private capital mobilization remains significantly below what is required, with low- and middle-income countries receiving a disproportionately small share," she said.This underscores the urgent need for targeted efforts to overcome investment barriers and better align financial flows with development priorities, she said."Mobilizing private capital is not merely a financing strategy -- it is a development imperative. With coordinated action, thoughtful regulation, and shared ambition as reflected in Compromiso de Sevilla, we can ensure that private investment becomes a force for inclusive, sustainable, and resilient growth," she said.Talking about key challenges for emerging economies, she said these include the high cost of capital, a shortage of bankable projects, regulatory and institutional constraints, limited local capacity, and high perceptions of risk - both country-specific and currency-related.Effective mobilization of private capital demands a multi-pronged strategy, combining robust domestic reform with strengthened international cooperation, she said.Pointing out seven strategic areas where transformation is both necessary and achievable, she said, strong domestic financial markets, addressing perceived risks through institutional reforms, creating scale in investment opportunities and scaling up of blended finance.Besides, she said Multilateral Development Banks (MDBs) and Development Finance Institutions (DFIs) must assume a stronger enabling role for mobilization of private capital.Stressing that international credit rating methodologies must evolve to better reflect the structural strengths and long-term resilience of EMDEs, she said, current sovereign ratings often understate key fundamentals.Reforming rating methodologies would not only enhance fairness but also reduce financing costs and unlock far greater volumes of private investment, she added.Finally, she said, unlocking capital at the grassroots level requires support for MSMEs "These engines of inclusive growth need access to credit, technology, and capacity-building, along with simplified compliance frameworks. India's initiatives, ranging from credit guarantees and stress-period financing to E-Commerce Export Hubs, have improved MSME creditworthiness and global value chain integration," she said.Sitharaman on Monday embarked on a three-nation official visit. She is leading an Indian delegation to Spain, Portugal and Brazil to attend a host of events, including the BRICS Finance Ministers and Central Bank Governors Meeting (FMCBG).
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

South Korea's military has shrunk by 20% in six years as male population drops
South Korea's military has shrunk by 20% in six years as male population drops

Time of India

time36 minutes ago

  • Time of India

South Korea's military has shrunk by 20% in six years as male population drops

Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel South Korea's military shrank by 20% in the past six years to 450,000 troops, largely due to a sharp drop in the population of males of enlistment age for mandatory service in the country with the world's lowest birthrate, a report said on dramatic decline in the pool of available males for military service is also causing a shortfall in the number of officers and could result in operational difficulty if it continues, the defence ministry said in the report was made to the ruling Democratic Party member of parliament Choo Mi-ae, whose office released Korea's military has steadily declined since the early 2000s when it had about 690,000 soldiers. The pace accelerated during the late 2010s and there were about 563,000 active-duty soldiers and officers in Korea is believed to have an active-duty military of about 1.2 million, according to the latest estimate by the defence ministry in the period between 2019 and 2025, the population of 20-year-old males declined by 30% to 230,000, according to government data, the age when most men who pass a physical exam enlist for military service, which is now 18 months military has cited improved capabilities as a key reason for shortening service periods, made possible by a military alliance with the United States and the development of a defence industry that has become a major exporter of men served 36 months in 1953 when the Korean War ended in an Korea's defence budget, at more than 61 trillion won ($43.9 billion) in 2025, is larger than the estimated size of North Korea's the military is 50,000 troops short of the number of troops adequate for maintaining defence readiness, the ministry said. About 21,000 of the shortfall is in the non-commissioned officer ranks, it Korea is one of the world's fastest ageing societies and has the lowest fertility rate in the world at 0.75 in 2024, which signifies the average number of babies a woman is expected to have during her reproductive population, which hit a peak of 51.8 million in 2020, is expected to shrink to 36.2 million by 2072, according to a government projection.

Capricorn Horoscope Today, 10th August 2025: Practical steps strengthen your path to success
Capricorn Horoscope Today, 10th August 2025: Practical steps strengthen your path to success

Time of India

time2 hours ago

  • Time of India

Capricorn Horoscope Today, 10th August 2025: Practical steps strengthen your path to success

Capricorn Horoscope Today, 10th August 2025: The Moon will transit into the Aquarius sign. This shifts your attention toward financial stability and personal resources. Mercury is retrograde in the Cancer sign. It can have delays in partnerships or contracts. Mars in Virgo supports long-term planning, especially in career or educational pursuits. ET Online Capricorn Horoscope Today: Practical steps strengthen your path to success Disclaimer Statement: This content is authored by a 3rd party. The views expressed here are that of the respective authors/ entities and do not represent the views of Economic Times (ET). ET does not guarantee, vouch for or endorse any of its contents nor is responsible for them in any manner whatsoever. Please take all steps necessary to ascertain that any information and content provided is correct, updated, and verified. ET hereby disclaims any and all warranties, express or implied, relating to the report and any content therein.

Gemini Horoscope Today, 10th August 2025: Unexpected connections spark curiosity and growth today
Gemini Horoscope Today, 10th August 2025: Unexpected connections spark curiosity and growth today

Time of India

time2 hours ago

  • Time of India

Gemini Horoscope Today, 10th August 2025: Unexpected connections spark curiosity and growth today

Gemini Horoscope Today, 10th August 2025: The Moon is transiting from the Aquarius sign and aligns with Rahu. Your mind is hungry for fresh ideas, exploration, and stimulating conversations. Mercury retrograde in Cancer warns you to double-check details in finances and commitments. ET Online Gemini Horoscope Today: Unexpected connections spark curiosity and growth today Disclaimer Statement: This content is authored by a 3rd party. The views expressed here are that of the respective authors/ entities and do not represent the views of Economic Times (ET). ET does not guarantee, vouch for or endorse any of its contents nor is responsible for them in any manner whatsoever. Please take all steps necessary to ascertain that any information and content provided is correct, updated, and verified. ET hereby disclaims any and all warranties, express or implied, relating to the report and any content therein.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store