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This report while examining the capital investments of Sovereign Wealth Funds (SWFs) and Pension Funds (PFs) reveals a growing interest in infrastructure projects, amongst these institutional investors. This trend stems from the attractive security provided by many infrastructure projects, coupled with the substantial capital and long-term investment horizon of these institutional investors. While developed countries traditionally dominate the portfolios of these investors, a significant portion of capital is now flowing into developing economies.

In India, the infrastructure sector continues to play a pivotal role in driving growth and development. SWFs and PFs are crucial players in financing infrastructure development, with the Indian government implementing measures to incentivize their involvement. Notably, the introduction of tax exemptions under section 10 (23FE) of the Income Tax Act of 1961 encourages investment in Indian infrastructure by these institutional investors.

This report delves into infrastructure investments by SWFs and PFs from 2018 to the present, aiming to bring to the fore the role played by these institutional investors in bridging the infrastructure financing gap. And looking into some of the domestic policy and regulatory mechanisms in the context of these investors in the infrastructure sector. In addition to informing the larger audience, this work aims to create awareness among civil society organisations and the larger audience regarding the emerging trends in infrastructure financing in India. By being aware of these emerging trends, it is hoped that general public awareness will be enhanced; and will add to the idea of creating an oversight that will help in ensuring accountability for potential social and environmental implications.

Read and download the report here: SWF, and PF Infrastructure Investments in India

 

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