Blended financing can strengthen government efforts to support underserved sectors of society by promoting the efficient use of limited resources and supporting long-term sustainability.
Themes
BS Opinion
India’s already large annual SDG funding gap is estimated to have nearly doubled post-Covid. According to the government, social sector funding has grown to 30 percent of nominal gross domestic product, but is still constrained by limited resources. This capital gap can be addressed through blended finance: the use of financial instruments to combine private, public and philanthropic capital to (i) increase the capital available for development and (ii) allocate that capital efficiently to achieve results socio-environmental Blended finance in India is now at an inflection point and has great potential to address various market failures.
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First published: Wednesday, August 17, 2022. 00:02 IST
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