Finance Minister, Nirmala Sitharam, focused on attracting more private investment to foster city buildings and roads for a brighter future.
During the ‘G20 Infrastructure Investment Dialogue’, Finance Minister Nirmala Sitharaman stresses attracting private companies to invest money in developing cities. She believes using innovative strategies and finding new ways to finance infrastructure projects can help cities grow sustainably.
Sitharaman explained that getting money for infrastructure projects has become harder as interest rates are booming, and it’s getting more difficult to repay debts. Using new and creative ways to finance projects, like blended finance and thematic bonds, could help fill the funding gaps.
The minister also mentioned the importance of improving the creditworthiness of urban local bodies. It means ensuring cities and local governments have sound financial reputations and more investors are willing to lend money.
Sitharaman emphasised that the decisions we make about infrastructure now will affect the future of our cities and the quality of life for future generations. She said developing good infrastructure is a big challenge because more people are moving to cities. In fact, over half of the world’s population already lives in urban areas, and that number is expected to increase.
The minister discussed the GIFT International Financial Services Centre (IFSC), a special area for financial businesses. She said this centre is growing quickly and already has many banks, insurance companies, and other financial institutions registered there.