Sovereign Wealth Funds & Pension Funds emerge key drivers of capital inflow in India: Report

The Sovereign Wealth Funds (SWFs) and Pension Funds (PFs) person emerged arsenic captious drivers of superior travel into India says a study named "The Role of Sovereign Wealth and Pension Funds successful India's Growth".

The study noted that these funds person been cardinal drivers of superior inflow into the country, importantly contributing to sectors specified arsenic infrastructure, existent estate, healthcare, and renewable energy.

According to the report, arsenic of November 2024, SWFs had invested astir USD 626 cardinal straight successful India, reflecting their expanding involvement successful the market.

It besides added that planetary funds specified arsenic GIC Private Limited, the Public Investment Fund (PIF), and Temasek person played a large relation successful this concern wave. The study noted that successful 2023, these funds managed assets ranging from USD 492 cardinal to implicit USD 1.5 trillion.

The study said "With their semipermanent concern horizons, unchangeable returns, and robust hazard mitigation strategies, SWFs and PFs are not lone bolstering India's economical trajectory but besides enhancing the country's attractiveness to planetary capital".

Investment successful Indian securities by SWFs has besides seen a crisp rise. In May 2024, it was reported that full securities holdings by SWFs successful India accrued by 60 per cent, rising from Rs 3 trillion successful 2023 to Rs 4.7 trillion successful 2024.

Despite the affirmative trends, the study pointed retired definite challenges that could interaction aboriginal investments. Issues specified arsenic regulatory oversight, governance concerns, and geopolitical risks whitethorn make hurdles successful ensuring creaseless superior inflows.

It added "Regulatory oversight, governance issues, and geopolitical uncertainties tin interaction the creaseless travel of investments. To afloat recognize the imaginable of SWF and PF investments, continued absorption connected argumentation reforms, transparency, and a unchangeable concern clime is essential".

Looking ahead, India's rapidly increasing system and expanding involvement from planetary organization investors make a promising outlook. The study noted that strengthening partnerships betwixt SWFs, PFs, and the Indian marketplace is expected to thrust economical improvement and sustainable concern returns.

With the close strategies, India is good connected its mode to becoming a starring planetary hub for SWF and PF investments, contributing to semipermanent economical maturation and prosperity.