BRICS finance chiefs back steps to pull private capital into infrastructure

Finance ministers and central bank governors of the BRICS grouping have endorsed a set of measures aimed at drawing private capital into infrastructure projects across emerging markets, including stronger public-private partnership frameworks, de-risking mechanisms and multilateral guarantees.

The backing came in a joint statement issued after the group met in Mumbai on Thursday, ahead of the BRICS leaders' summit scheduled in the national capital on 12-13 September.

The ministers noted that emerging economies face sizeable infrastructure financing gaps at a time when fiscal constraints limit how much governments can fund on their own. They said stronger development finance, greater private investment and higher infrastructure spending would be central to economic resilience amid geopolitical tensions, trade fragmentation and financial vulnerabilities.

Push to make projects bankable

The grouping welcomed the work of its Task Force on PPPs and Infrastructure, which has studied partnership models, risk-allocation frameworks and ways to reduce project risk. Its technical report is meant to serve as a reference for member countries looking to strengthen their PPP ecosystems.

The statement stressed the need for a robust pipeline of projects and active engagement with private investors, alongside best practices on risk allocation. The aim is to address technically viable projects that struggle to attract private capital because of construction, demand, currency, regulatory or other risks.

Ministers also welcomed progress on the BRICS Multilateral Guarantees initiative, being prepared by the New Development Bank. The NDB is working on pilot transactions under its existing guarantee policy. The initiative is expected to help mobilise private capital, improve project creditworthiness and lower financing costs across BRICS and other emerging and developing economies.

With the NDB entering what the grouping described as its "second golden decade", BRICS encouraged the bank to expand local-currency financing, strengthen project-preparation facilities, diversify funding sources and support high-impact infrastructure and development projects. It also called for greater institutional capacity and operational effectiveness, while encouraging further membership expansion.

For India, the emphasis on PPPs and infrastructure financing aligns with efforts to increase private participation in roads, railways, ports and urban infrastructure. Better risk allocation and guarantees could make long-gestation projects more bankable and reduce the risk premium sought by private investors and lenders.

Wider financial agenda

BRICS reported progress on a proposed New Investment Platform, with members broadly supporting a phased, consensus-based and member-driven approach that respects national regulatory frameworks and institutional mandates. A dedicated study group is being considered to deepen discussions on its structure and operational modalities.

The grouping also pressed for changes to the global financial architecture, seeking greater representation for emerging and developing economies at the International Monetary Fund and the World Bank. It called for faster implementation of the IMF's latest quota increase and meaningful quota realignment under the next review.

Ministers said the NDB should play a stronger role and that development finance needs to be mobilised more effectively as protectionism, high debt and geopolitical tensions weigh on global growth.

Separately, BRICS countries continued work on cross-border payments, including interoperability of payment and messaging systems and greater use of local currencies for trade and investment. The objective is payment mechanisms that are faster, cheaper, more accessible, transparent and secure, while recognising that no single model suits all members.

The finance ministers and central bank governors also endorsed cooperation on climate finance, cybersecurity, artificial intelligence and quantum computing, reflecting a broader effort to build financial systems resilient to technological and climate-related risks.