The fundraising comes as India ramps up infrastructure spending to support economic growth.
India’s quasi-sovereign wealth fund, National Investment and Infrastructure Fund (NIIF), is courting a broader pool of investors from Japan to Europe, betting that the country’s infrastructure boom will keep drawing long-term overseas capital.NIIF announced Monday that it secured $2 billion in the first close of its latest infrastructure fund. Vinod Giri, managing partner of NIIF’s infrastructure fund, said in an interview that it now plans to raise another $1.2 billion within 18 months to reach its $3.2 billion target.About $600 million in fresh capital is expected from investors in Japan, Korea, Australia and Europe, Giri said Monday. The fundraising comes as India ramps up infrastructure spending to support economic growth and courts long-term global capital for sectors ranging from clean energy and transport to digital infrastructure. NIIF has emerged as a key vehicle for channeling sovereign wealth and pension-fund money into those projects.Indian officials are stepping up efforts to sell the world’s fastest-growing major economy to overseas investors. Ministers have recently highlighted India’s rapid urbanization, expanding middle class and digital infrastructure in pitches across North America and Japan.Investor appetite has of late held up despite the rupee’s slide since the start of the Iran war. The scale of India’s infrastructure market, policy stability and a track record of successful exits are helping overseas institutions look beyond near-term currency weakness, Giri said.“Most of the global investors are looking at doubling, tripling their investment in infrastructure in India” over the next five to seven years, he added.Global investors have poured billions of dollars into Indian roads, renewable energy, warehouses and data centers, complementing a government infrastructure push that has lifted capital spending more than sixfold to ₹12.2 trillion ($128 billion) in fiscal 2026-27 from 2014-15.Data centers will be a major focus. NIIF expects to deploy “sizable capital” in the sector in the coming months, Giri said. The fund will also target energy and transport, as well as urban infrastructure and electric mobility, he said.Returns will depend on execution, including choosing the right partners and structuring projects effectively, Giri said.NIIF’s first infrastructure fund raised $2.3 billion and made investments across transport, energy and digital infrastructure.Set up by Prime Minister Narendra Modi’s government in 2015, NIIF now manages around $7 billion in equity capital commitments across infrastructure, private markets, growth equity and climate investments. The fund has previously outlined plans to double its assets under management to $10 billion.Published on August 31, 2026
