InvestorQ : Is India likely to float its own sovereign wealth fund like other countries?
diksha shah made post

Is India likely to float its own sovereign wealth fund like other countries?

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1 week ago
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First and foremost, this debate is nothing new and has been going on since 2007 when China floated its $200 billion sovereign wealth fund or SWF. This debate is suddenly back after India’s forex reserves topped $600 billion. SWFs normally entail investing of export surplus into productive and high growth investments. The idea is to use forex flows productively and also to reduce dependence on handful of commodities like oil & minerals.

India could do well to have its own SWF as it gives a lot of global investing power. Look at a small nation like Norway having the world largest SWF at $1.2 trillion. China’s CIC is around $1.1 trillion. Most of the Middle East oil SWFs like ADIA of Abu Dhabi, SAMA of KSA and Kuwait Investment Authority put oil earnings to good use. Of course, one cannot forget that Singapore has 2 SWFs; Temasek and GIC with both commanding a lot of global clout.

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