The Union Cabinet has approved an additional Government of India (GOI) investment commitment of Rs 300 bn in the National Investment and Infrastructure Fund (NIIF), taking the total GOI commitment to Rs 600 bn. The NIIF, India’s sovereign anchored fund, is professionally run by National Investment and Infrastructure Fund Limited (NIIFL), in which GOI holds a 49 per cent stake. NIIF currently manages capital commitments of about Rs 400 bn across its funds and strategies and has returned close to Rs 120 bn to investors through large portfolio exits.

NIIF has attracted capital from a range of institutional investors, including sovereign wealth funds, pension funds, multilateral development banks and leading domestic financial institutions. Named investors include Abu Dhabi Investment Authority, AustralianSuper, CPP Investments, Temasek and major Indian banks and financial groups, reflecting international and domestic confidence in India’s growth and NIIF’s governance record. These investors span geographies such as Australia, Canada, Japan, Singapore, the United Arab Emirates and the United States.

The fund operates four investment strategies: infrastructure, private markets, growth equity and climate investments in the India–Japan business corridor. Its first infrastructure fund, with a corpus of Rs 160 bn, is the largest domestic infrastructure fund and has created platforms across transportation, energy and digital infrastructure. NIIF’s private markets and strategic opportunities funds have supported daughter AIFs, affordable housing, healthcare, financial services, manufacturing and venture capital, while the India–Japan fund focuses on climate, circular economy and energy transition.

The new commitment will be used to establish NIIF Infrastructure Fund II, which is proposed to have a target corpus close to Rs 300 bn and to pursue investments across transportation, energy, digital infrastructure and emerging urban and e?mobility sectors. The allocation is intended to catalyse institutional capital, support national programmes such as Gati Shakti and Digital India, and promote high quality infrastructure and job creation. The government anticipates that the allocation will advance Atmanirbharta and contribute to the country’s development objectives through to 2047.