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.
