GS 3 – ECONOMY
The National Investment and Infrastructure Fund (NIIF), a government-backed initiative, plans to raise a $2 billion private credit fund—the largest of its kind in India. Discussions are ongoing with sovereign investors to secure participation.
NIIF Overview
- Established in 2015, NIIF mobilizes long-term capital for infrastructure projects.
- Headquartered in Mumbai, it is 49% owned by the Indian government and 51% by global investors, including Ontario Teachers’ Pension Plan, AustralianSuper, ADIA, and Temasek.
Fund Structure
- Master Fund – Invests in stable enterprises with long-term agreements.
- Fund of Funds (FoF) – Channels capital into private equity funds.
- Strategic Fund – Invests in equity and equity-linked instruments under SEBI regulations.
Investment Strategy and Economic Impact
NIIF diversifies investments across infrastructure, green energy, healthcare, and affordable housing, reducing risk while boosting economic growth. The fund’s initiatives help attract international capital, enhancing India’s infrastructure landscape and quality of life.