India planning its own sovereign wealth fund to invest abroad: Report

The Indian government has started preliminary discussions with key stakeholders, including the Reserve Bank of India (RBI), the Securities and Exchange Board of India (SEBI), and officials from GIFT City, to examine the viability of establishing a sovereign wealth fund (SWF) for the country, as reported by CNBC-TV18.

These discussions are part of a broader strategy to position India as a $30 trillion economy by 2047. The concept of a sovereign wealth fund has gained significant traction since the swearing-in of Prime Minister Narendra Modi’s third-term cabinet.

Officials involved in the discussions believe that such a fund could be instrumental in boosting India’s financial influence on the global stage, CNBC-TV18 reported.

The proposed SWF could potentially boost India’s ability to invest in infrastructure projects abroad, particularly in neighbouring countries and regions like Africa, which are key priorities for the Indian government.

More from World

Nepal's new PM pays homage to people died during the Gen Z protest in her first national address This Week in Explainers: How recovering from Gen-Z protests is a Himalayan task for Nepal

To gauge interest and potential success, the government has sought feedback from over 30 Public Sector Undertakings (PSUs). Though initial proposals suggest that a $5 billion fund could generate $10 billion worth of investment opportunities annually, attracting substantial global interest.

A key consideration is whether the SWF would provide India a greater leverage in supporting friendly nations compared to current methods, such as lines of credit and grants.

The fund is expected to operate via the Public-Private Partnership (PPP) mode, enabling India to make strategic investments abroad. While discussions are still in the early stages, sources said momentum has been building over the past month.

Impact Shorts

More Shorts

‘The cries of this widow will echo’: In first public remarks, Erika Kirk warns Charlie’s killers they’ve ‘unleashed a fire’

Trump urges Nato to back sanctions on Russia, calls for 50–100% tariffs on China

While discussions are still in the early stages, the momentum has been building over the past month, sources said.

The government is expected to take further steps in the coming weeks to explore the fund’s potential, initially focusing on PSUs and later expanding to institutions like JICA and listed companies.