PFRDA chief calls for stronger marketplace for long-term capital to boost infrastructure

India needs a more robust marketplace for long-term funds to support infrastructure and economic growth, said S Ramann, Chairman of the Pension Fund Regulatory and Development Authority (PFRDA), at the second edition of the CII Financing Summit 2025 in Mumbai.

The summit was organised in partnership with the Department of Financial Services, Ministry of Finance.

Speaking during the session on “Funding India’s Long-Term Growth: Matching Supply and Demand,” Ramann highlighted the importance of predictable long-term instruments, credit-enhanced structures, deeper corporate bond markets, and a strengthened credit rating ecosystem.

These, he said, would allow pension funds to play a larger role in infrastructure and other long-term sectors.

From the government’s perspective, Manoj M Ayyappan, Joint Secretary, Department of Financial Services, stressed the need to deepen financial markets, strengthen credit guarantee frameworks, and ensure seamless flows of long-term capital.

He noted that while banks and the government have been key in funding infrastructure, other sources of “patient capital,” such as pension and insurance funds, must now be mobilised.

He also emphasised the importance of supporting rural sector and MSME financing.

Rajkiran Rai G, Managing Director of NaBFID, observed that India’s long-term financing needs will rise sharply with accelerated infrastructure creation, particularly in urban sectors such as public transport, affordable housing, utilities, and city-level resilience.

He also highlighted energy, port-led logistics, and datacentre projects as key areas requiring substantial capital.

Echoing the need for diversification of long-term financing, Palash Srivastava, MD (Additional Charge) of IIFCL, said domestic pools like pension, insurance, and mutual funds remain underutilised.

He suggested strengthening de-risking tools, guarantees, and payment security frameworks to unlock these resources, particularly for MSMEs.

Sonia Dasgupta, MD & CEO of JM Financial’s Investment Banking division, added that early-stage green and infrastructure projects cannot rely on capital markets, which typically enter later.

She called for simpler, flexible investment products that encourage domestic long-term savings without requiring excessive lock-ins.