Finance Minister Nirmala Sitharaman, during a discussion organized by the Confederation of Indian Industry in Morocco, called for private capital to collaborate with governments and multilateral institutions in advancing the Sustainable Development Goals (SDGs). She emphasized the role of philanthropic capital in absorbing risks and reducing costs to mobilize private capital, stating that the SDGs are a collective responsibility for all stakeholders.

Sitharaman urged the private sector to participate in the pursuit of these global goals, emphasizing that the Sustainable Development Goals (SDGs) serve as a shared blueprint for a better future for people and the planet. Her remarks come at a time when financing for global issues like the SDGs is under scrutiny, with growing pressure on Multilateral Development Banks (MDBs) such as the World Bank and IMF to adapt and contribute to these objectives. At a recent meeting, the World Bank President, Ajay Banga, acknowledged the need for private sector collaboration to enhance the institution’s capacity.

Sitharaman highlighted that despite the 2030 deadline for the SDGs being only seven years away, global progress stands at just 12%, and the pandemic has increased the annual financing gap to $3.9 trillion. She mentioned that India has focused on SDGs related to health, education, poverty reduction, and clean water, mapping them to financial instruments like social impact bonds and SDG-linked bonds to mobilize private financing. She emphasized that private sector investments must align with countries’ sustainability needs and the creation of public goods, ensuring the pursuit of SDGs is itself a sustainable endeavor.

In a challenging global economic landscape, Sitharaman noted India’s resilience and potential as a beacon of hope for the world. Overall, her call for private capital involvement seeks to address the pressing need for collaboration in achieving the SDGs.

Re-reported from the article originally published in The moneycontrol news