India’s Finance Minister Nirmala Sitharaman on July 4 called upon the New Development Bank (NDB) to play a catalytic role in unlocking private sector capital to meet the development financing needs of the Global South. Speaking at the 10th Annual Meeting of the Board of Governors of NDB in Rio de Janeiro, Brazil, she said this was critical given the limited fiscal space and growing demands for public capital expenditure.
The New Development Bank (NDB) is a multilateral financial institution established by the BRICS countries — Brazil, Russia, India, China, and South Africa — in 2014. It officially commenced operations in 2015 with its headquarters in Shanghai, China. The Bank was created to mobilise resources for infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries, and to offer an alternative to established Western-led financial institutions such as the World Bank and the International Monetary Fund (IMF).
“The NDB should play a catalytic role in unlocking private sector capital,” Sitharaman said, emphasising that special focus must be placed on tailored support for small and medium enterprises (SMEs), especially women-led enterprises, to ensure inclusive participation, economic development, and promote gender equity.
The Finance Minister highlighted that multilateral development banks (MDBs), including the NDB, have a pivotal role in addressing the uncertainties that the Global South faces due to fiscal constraints, climate transition challenges, and evolving geopolitical dynamics. “MDBs have a distinctive comparative advantage in their ability to catalyse both public and private investments by offering a package of technical expertise, concessional financing, and effective risk mitigation tools, thereby widening our policy options,” she noted.
Sitharaman lauded the NDB’s achievements in its first decade, stating that it had emerged as a credible institution financing key infrastructure projects and supporting resilient infrastructure across the Global South. She urged the NDB to build on this momentum by adopting global best practices to strengthen its financial capacity. “Actionable steps could be adopted from the Capital Adequacy Framework for MDBs, and the Better, Bolder and Bigger MDB reforms brought out during India’s G20 Presidency in 2023,” she suggested.
The Finance Minister also called for deeper cross-country partnerships to promote knowledge exchange, policy innovation, and technical cooperation. She said India stands ready to collaborate with the NDB in sharing successful models, such as its achievements in digital public infrastructure and renewable energy adoption, for broader replication.
Sitharaman stressed the need for robust governance and transparent institutional mechanisms at the NDB. “Continued focus on accountability, responsiveness, and stakeholder trust must remain a priority to ensure the Bank’s long-term sustainability,” she said.
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