<p>Nirmala Sitharaman, the minister of finance, emphasized on Sunday the need of using novel approaches to draw in private capital, close financing gaps, and promote the long-term growth of urban infrastructure.</p>
<p>Speaking at the “G20 Infrastructure Investment Dialogue,” the minister said that the tightening of monetary policy in important markets has made the situation regarding financing infrastructure even more difficult.</p>
<p>The restrictive monetary policy causes interest rates to rise and the cost of debt repayment to increase.<img decoding=”async” class=”alignnone wp-image-82187″ src=”https://www.theindiaprint.com/wp-content/uploads/2023/07/www.theindiaprint.com-to-develop-urban-infrastructure-fm-nirmala-sitharaman-stresses-attracting-private-investment-1679933251-7815-11zon-750×422.png” alt=”” width=”1560″ height=”878″ srcset=”https://www.theindiaprint.com/wp-content/uploads/2023/07/www.theindiaprint.com-to-develop-urban-infrastructure-fm-nirmala-sitharaman-stresses-attracting-private-investment-1679933251-7815-11zon-750×422.png 750w, https://www.theindiaprint.com/wp-content/uploads/2023/07/www.theindiaprint.com-to-develop-urban-infrastructure-fm-nirmala-sitharaman-stresses-attracting-private-investment-1679933251-7815-11zon-768×432.png 768w, https://www.theindiaprint.com/wp-content/uploads/2023/07/www.theindiaprint.com-to-develop-urban-infrastructure-fm-nirmala-sitharaman-stresses-attracting-private-investment-1679933251-7815-11zon-390×220.png 390w, https://www.theindiaprint.com/wp-content/uploads/2023/07/www.theindiaprint.com-to-develop-urban-infrastructure-fm-nirmala-sitharaman-stresses-attracting-private-investment-1679933251-7815-11zon-150×84.png 150w, https://www.theindiaprint.com/wp-content/uploads/2023/07/www.theindiaprint.com-to-develop-urban-infrastructure-fm-nirmala-sitharaman-stresses-attracting-private-investment-1679933251-7815-11zon.png 826w” sizes=”(max-width: 1560px) 100vw, 1560px” /></p>
<p>According to her, creative financing and finance structures for cities may be able to significantly close the growing budget gaps.</p>
<p>Additionally to public investment and finance supplied by Multilateral Development Banks (MDBs), it may supplement the pool of cash available for infrastructure.</p>
<p>To leverage private sector engagement in this situation, we need alternative alternatives. According to Sitharaman, there is a need for innovative financing methods such blended finance, structured project finance, securitization, theme bonds, biodiversity offers, and local currency finance.</p>
<p>The minister also argued in favor of creating an environment with the right policies and regulations to raise the creditworthiness of urban local governments.</p>
<p>The minister emphasized that “our investment choices will shape the future of our cities and determine the quality of life for future generations.”</p>
<p>The minister emphasized in her opening remarks the importance of recognizing infrastructure’s capacity to provide public goods and enable shared prosperity, which is the central principle guiding India’s overall G20 Presidency theme, “Vasudhaiva Kutumbakam.”</p>
<p>One of the most serious issues facing cities in a world that is quickly urbanizing is providing decent urban infrastructure.</p>
<p>According to Sitharman, 68 percent of people on earth would live in metropolitan regions by 2050, up from the current 55 percent.</p>
<p>She said that significant infrastructure investment would be required to handle this expansion.</p>
<p>According to Sitharaman, the GIFT International Financial Services Centre (IFSC) has been recognized as a unique international financial jurisdiction with dependable business rules and a competitive tax system that places a strong emphasis on business convenience.</p>
<p>She told the group that the GIFT IFSC has more than 400 registered entities across a variety of industry sectors, including banking, capital markets, insurance, fintech, leasing of aircraft, and bullion exchange, and that it is expanding quickly with a healthy and expanding participation of both domestic and international financial institutions.</p>
