Permanent Mission of India
New York
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2026 Financing for Development Forum

            2026 in-depth review: Domestic and international private business and finance

 Statement by Ms. Petal Gahlot, First Secretary

23 April 2026

Mr. President,

Private business and finance have a key role to play in supporting sustainable development, yet their full potential remains far from realised. Despite growth in sustainable investment and financial inclusion, many developing countries continue to face significant challenges in mobilising private resources at scale, with the cost of capital remaining disproportionately high.

At the national level, strengthening enabling environment is critical. This includes streamlining regulatory processes, strengthening legal protections for investors, ensuring fair competition, and providing fiscal incentives for sustainable projects. Public-private partnerships can help leverage private sector efficiency, while stronger support for entrepreneurship and innovation remains essential for fostering private investment.

Improving access to finance, especially for SMEs, is equally important. Expanding access to financial services through digital technologies, alongside financial literacy initiatives, can empower individuals and businesses. In this regard, digital public infrastructure has demonstrated its potential to scale financial inclusion in a cost-effective and inclusive manner. Supporting microfinance institutions and developing gender-sensitive policies will further ensure broad-based participation.

At the global level, addressing structural constraints remains key. Multilateral Development Banks, Development Finance Institutions, and Regional Development Banks can play a catalytic role through de-risking measures, credit enhancement, guarantees, and local currency financing to attract long-term investment.

Blended finance offers significant potential to mobilise private capital by leveraging concessional and philanthropic resources. However, such approaches must remain aligned with country priorities, deliver tangible outcomes, and reflect national circumstances.

We also highlight that sovereign credit ratings continue to constrain access to affordable market finance for developing countries. Greater transparency and improved methodologies are needed to better reflect country realities and support increased private capital flows.

Clear and consistent standards, including disclosure frameworks, are essential to set expectations for responsible business conduct, while avoiding fragmentation across jurisdictions. At the same time, interoperability across standards should be pursued in a manner that remains flexible and responsive to national circumstances. Capacity-building will be critical to support developing countries in implementing these frameworks, strengthening data systems, and developing pipelines of bankable projects.

The challenge ahead is not just mobilising private capital, but ensuring it flows at scale, at the right cost, and towards sustainable development outcomes.

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