Context:
The Government of India has begun discussions to establish a large Sovereign Wealth Fund (SWF) worth $50 billion, tentatively named the Bharat Sovereign Wealth Fund. The fund aims to generate long-term revenue streams beyond tax collections and strategically invest India’s reserves globally.
Key Highlights / Details
 Purpose & Objective
- To create a permanent and non-tax revenue source for the government.
- To invest funds globally and earn long-term returns from diversified assets.
- Designed to support socio-economic programmes and fiscal stability.
 Proposed Structure
- Initial capital expected from asset monetisation and efficiency gains.
- Fund to invest in sectors like energy, minerals, technology, infrastructure.
- Modeled on successful SWFs like Singapore’s Temasek.
 Strategic Rationale
- Enable India to invest surplus capital abroad to gain long-term returns.
- Help secure critical mineral assets and energy resources globally.
- Support national interests and economic growth through strategic investing.
 Global Context
- Over 90 SWFs globally control $13.7 trillion in assets (as of October 2025).
- Top SWFs include:
- Norway Government Pension Fund Global – $1.78 trillion
- China Investment Corporation – $1.35 trillion
- Abu Dhabi Investment Authority – $0.99 trillion
- Singapore’s Temasek cited as a model: delivers 14% annualised returns since 1974.
 Challenges
- Bureaucratic resistance and governance concerns.
- Requirement of operational autonomy for success.
- Need for clear risk management and transparency.
Relevant Prelims Points
- Sovereign Wealth Fund (SWF): State-owned investment fund managing national reserves.
- National Investment and Infrastructure Fund (NIIF): India’s existing quasi-SWF.
- Asset Monetisation: Leveraging existing government assets for capital generation.
- Temasek Model: Government-owned investment company functioning commercially.
Relevant Mains Points
- Role of SWFs in macroeconomic stability and fiscal resilience.
- Importance of strategic resource security (critical minerals, energy).
- Governance reforms needed to ensure transparency and accountability.
- Economic diplomacy through global investments.