Decoding the National Investment and Infrastructure Fund: An Exploratory Study

Sovereign wealth funds (SWFs) are government owned and managed investment vehicles used to further some pre-determined macroeconomic and/or development objective. The National Investment and Infrastructure Fund (NIIF) incorporated by India is a quasi-sovereign wealth fund, partly funded by the government and partly by other national and international financial institutions including sovereign wealth funds of other countries. The objective of NIIF is to create a pool of money large enough to finance major infrastructure projects in the country and bridge the deficit in infrastructure financing in India. This article is an exploratory study which attempts to bring together information pertaining to NIIF from various sources and explain its concept, functioning and potential. We conclude with a critical assessment of the idea and questions for further research.