Sovereign wealth funds (SWFs) are state-owned investment funds fueled by a country’s surplus reserves. They aim to benefit the economy by investing in various sectors. India’s appeal to global investors, including SWFs, has surged due to favorable policies and market performance. Recent commitments from SWFs, such as those from the UAE and Saudi Arabia, underscore India’s attractiveness. Notably, Norway’s SWF increased its Indian investments to nearly US$24 billion in 2023. Additionally, India’s MSCI weightage hit a record high, attracting significant foreign flows. Tax exemptions and inclusion in global indexes further boost India’s appeal. SWFs are increasingly investing in diverse Indian sectors, presenting stiff competition to private equity firms. Established SWFs and new players alike are expressing keen interest in India’s market.
