3 weeks ago
Sitharaman: Public capital must catalyze, not replace, private investment
There is a very important person in India who takes care of the country's money.
Her name is Nirmala Sitharaman.
She gave a speech in a city called Jaipur.
She said the government should help businesses start big projects but should not pay for everything.
Businesses also need to use their own money.
The government has special plans to help build roads, railways, and ports.
To get more money, the government sold a small part of some big companies it owns, like a life insurance company and a coal company.
She said banks that work across many countries can make projects safer for businesses.
Many countries in a group called BRICS have the same problem of getting businesses to invest.
The government plans to spend a very large amount of money, about 12.22 trillion rupees, on building things this year.
That is more than last year.
Finance minister Nirmala Sitharaman said public capital should catalyze private investment rather than substitute it, speaking at a BRICS seminar in Jaipur.
The government has raised ₹52,716.02 crore through disinvestment in 2026-27 so far, including ₹31,514.89 crore from a 6.5% stake sale in Life Insurance Corp. of India Ltd.
Sitharaman outlined reforms including viability gap funding, the hybrid annuity model, credit enhancement mechanisms, InvITs, the National Infrastructure Pipeline and PM Gati Shakti.
Budgeted capital expenditure for FY27 stands at ₹12.22 trillion, 11.5% higher than the FY26 revised estimate of ₹10.96 trillion.
She said multilateral development banks have a critical role in de-risking investments and mobilizing private capital at scale across BRICS economies facing common structural constraints.
- Who
- Nirmala Sitharaman, India's finance minister, and economic affairs secretary Anuradha Thakur, at the BRICS Finance Ministers' and Central Bank Governors' meeting.
- What
- Sitharaman said public capital should catalyze private investment rather than replace it and outlined government reforms to attract private investment in infrastructure.
- Where
- Jaipur, India, at a seminar on the sidelines of the BRICS Finance Ministers' and Central Bank Governors' meeting.
- When
- On Wednesday, during the BRICS Finance Ministers' and Central Bank Governors' meeting (exact date not specified in the article).
- Why
- To mobilize private capital at scale and strengthen private-sector participation in infrastructure across BRICS economies.
Key facts
- Finance Minister
- Nirmala Sitharaman
- Event
- Seminar on The Role of the New Development Bank in Mobilizing Private Capital in Member Countries, sidelines of BRICS Finance Ministers' and Central Bank Governors' meeting
- Location
- Jaipur, India
- Disinvestment raised in 2026-27
- ₹52,716.02 crore
- LIC stake sale
- 6.5% stake for ₹31,514.89 crore
- Other disinvestment receipts
- ₹5,542.36 crore from Coal India Ltd; ₹4,357.36 crore from NHPC Ltd
- Budgeted capital expenditure FY27
- ₹12.22 trillion, 11.5% higher than FY26 revised estimate of ₹10.96 trillion
- Key reforms cited
- Viability gap funding, hybrid annuity model, credit enhancement, InvITs, National Infrastructure Pipeline, PM Gati Shakti






