Daijiworld Media Network - Sevillla
Sevillla, Jun 30: Finance Minister Nirmala Sitharaman on Monday highlighted India’s sweeping institutional and regulatory reforms as a core strategy to reduce investment risks and attract private capital into sustainable development, particularly in emerging economies. Speaking at the International Business Forum Leadership Summit in Madrid, she said the Indian model has focused on independent regulators, transparent bidding, standardised contracts, and improvements in the ease of doing business.
She pointed out that emerging markets often suffer from high risk perception, which inflates financing costs and deters investors. India, she noted, had responded by strengthening its banking sector and deepening capital markets to support large-scale infrastructure and industrial financing.
Sitharaman told the gathering that India’s regulatory frameworks have evolved to meet market needs, maintaining a balance between investor protection and innovation. This has helped create a more stable and conducive environment for long-term investments. While India has seen growth in private investments, supported by both traditional and new financial instruments, she acknowledged that private capital mobilisation in developing economies still remains well below required levels.
She stressed that the gap in financial flows highlights the urgency of addressing barriers to investment and ensuring capital aligns better with development priorities. The Finance Minister pointed to India’s renewable energy expansion as a successful case of policy-led private investment. From 2.8 GW of solar power capacity in 2014, India has scaled up to more than 110 GW. This, she said, was enabled by national targets, streamlined procurement, and government-backed risk mitigation, which drew interest from global institutional investors including pension and sovereign wealth funds.
Sitharaman emphasised that scalability is the key to successful technology adoption and implementation. With India’s large population and digital reach, the country has a natural advantage in scaling solutions. But she added that international cooperation remains essential for achieving large-scale success across borders.
She also said that strong domestic financial systems were necessary to enable such transformation. Referring to her current official visit from June 30 to July 5, she noted that she would be meeting ministers from Germany, Peru, and New Zealand as well as European Investment Bank President Nadia Calvino.
Sitharaman’s trip will also take her to Portugal, where she will meet Finance Minister Joaquim Miranda Sarmento and hold discussions with Indian investors and diaspora members. She will conclude her trip in Brazil, where she will participate in the 10th Annual Meeting of the New Development Bank and the BRICS Finance Ministers and Central Bank Governors Meeting.