How Much Have Sovereign Wealth Funds Invested in India in FY25?
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Synopsis
India is attracting significant investments from sovereign wealth funds, with a net amount of Rs 8,426 crore in FY25. This trend underscores the confidence global investors have in India's economic prospects. The government’s reforms and incentives further position India as a preferred destination for long-term foreign investments.
Key Takeaways
- India attracted Rs 8,426 crore from sovereign wealth funds in FY25.
- Financial services emerged as the leading sector for investments.
- Global investor confidence in India’s growth remains strong.
- The government is facilitating foreign investments through reforms.
- Long-term capital is essential for India’s development.
New Delhi, Aug 18 (NationPress) India continues to be a significant attraction for long-term investors in FY25, as sovereign wealth funds (SWFs) have injected a net Rs 8,426 crore into the nation, as reported in Parliament on Monday.
This consistent influx showcases global investors’ confidence in India’s growth narrative.
In FY24, the investments were substantially higher at Rs 47,604 crore, with FY23 also seeing robust contributions of Rs 15,446 crore, as stated by Union Finance Minister Nirmala Sitharaman in a written reply during a Lok Sabha session.
The exception was FY22, marked by a net outflow of Rs 3,825 crore. Over recent years, international sovereign and pension funds have demonstrated persistent interest in India, solidifying its status as one of the most promising emerging markets.
In terms of sectoral investments, financial services received the highest influx at Rs 28,562 crore from FY22 to FY25, followed by IT with Rs 19,135 crore, healthcare with Rs 7,830 crore, and telecom with Rs 7,053 crore.
These sectors highlight India’s strengths in technology, digital infrastructure, and healthcare innovation.
Experts emphasize that such consistent inflows are crucial as they represent patient, long-term capital that bolsters India’s developmental trajectory.
With the government advocating for reforms, infrastructure advancements, and digital growth, India is poised to remain a compelling destination for global funds in the foreseeable future.
The Finance Minister mentioned that while FDI inflows from SWFs and pension funds are not tracked separately, their portfolio investments are observed by sector.
She added that the government has introduced tax exemptions, regulatory relaxations, and simplified FDI norms to attract long-term foreign investors.
Currently, over 95 percent of FDI inflows occur via the automatic route, with the Union Budget 2025 also increasing the FDI cap in insurance to 100 percent from 74 percent, FM Sitharaman noted.
Point of View
I believe that the substantial investments by sovereign wealth funds in India reinforce the nation’s potential and stability. The government’s proactive approach to reforms and infrastructure development indicates a clear commitment to fostering a conducive environment for long-term investors.
NationPress
19/08/2025
Frequently Asked Questions
What are sovereign wealth funds?
Sovereign wealth funds are state-owned investment funds or entities that manage national savings for the purposes of investment.
How much did sovereign wealth funds invest in India in FY25?
In FY25, sovereign wealth funds infused a net amount of Rs 8,426 crore into India.
Which sectors received the highest investments?
The financial services sector attracted the most investments, followed by IT, healthcare, and telecom.
What measures has the Indian government taken to attract foreign investments?
The government has implemented tax exemptions, regulatory relaxations, and eased FDI rules to attract long-term foreign investors.
How does India rank as an investment destination?
India is considered one of the most promising emerging markets, attracting significant interest from global investors.
