Gandhinagar (Gujarat)[India], July 16 : The Investors Dialogue was organized in partnership with the Gujarat International Finance Tec-City (GIFT), the Organisation for Economic Co-operation and Development (OECD) and the D20 Long-Term Investors Club (LTIC) on Sunday, July 16. The event aimed to discuss approaches to enhance private sector participation in infrastructure investment for the cities of the future.
Finance Minister Nirmala Sitharaman delivered the opening remarks, extending a warm welcome to the distinguished guests and participants.
She expressed her appreciation to the OECD, GIFT, and D20-LTIC for providing a strategic platform for stakeholders to deliberate on the financing of inclusive, resilient, and sustainable cities.
Highlighting the significance of GIFT as a city of tomorrow, the Finance Minister emphasized the role of the GIFT International Financial Services Centre (IFSC) as a special international financial jurisdiction.
With a focus on ease of doing business, competitive tax structures, and trusted business regulations, GIFT International financial Services Centre (IFSC) has already attracted over 400 entities from various business segments including banking, capital markets, insurance, and fintech.
The Finance Minister acknowledged that cities serve as engines of economic growth and robust urban infrastructure is essential for their proper functioning. She highlighted the importance of urban infrastructure for economic growth, job creation and societal well-being.
The Minister also emphasized the role of infrastructure in attracting private and foreign investments, thus strengthening the country's economy.
Statistics currently state that 55% of the world's population resides in urban areas, a number expected to rise to 68% by 2050.
To accommodate this growth, massive investments in infrastructure will be necessary. Existing and new infrastructure must adapt to climate change and meet net-zero targets. The Finance Minister emphasized the estimated USD 29.4 trillion investment required between 2018 and 2030 for cities in emerging markets.
Recognizing the constraints faced by governments in financing infrastructure investments, the Finance Minister stressed the need for innovative financing mechanisms. She highlighted the potential of blended finance, structured project finance, securitization, thematic bonds, and local-currency finance to bridge the financing gap and foster sustainable development.
To attract private sector investment and long-term institutional capital into urban infrastructure, Nirmala Sitharaman called for policies focusing on urban planning, revenue generation, legal and institutional frameworks and confidence-building measures.
An ecosystem that improves the creditworthiness of urban local bodies, enhances institutional capability, strengthens financial institutions, and establishes appropriate policy and regulatory frameworks.
In her closing remarks, the Finance Minister expressed gratitude to the participants for their valuable time and input. She expressed confidence that the collaboration between stakeholders, including multilateral development banks and governments, would lead to fruitful outcomes in facilitating urban infrastructure financing.
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