Foreign investors eye co-investment deals in India’s infrastructure sector: NIIF CEO
Hey there! So, this news about foreign investors eyeing India's infrastructure is super relevant for your CLAT prep, especially for the economy and current affairs sections. Basically, big international money is looking to pour into building our roads, ports, and power projects. The NIIF CEO mentioned that these investors want to partner up, not just hand over cash, and they're also concerned about the rupee fluctuating against the dollar. This signals a growing confidence in India's growth story and the government's efforts to attract foreign direct investment, which ties into policies promoting economic development and international trade agreements. For your exam, remember the NIIF's role and how economic policies attract investment.
NIIF Managing Director and CEO Sanjiv Aggarwal said global investors are highly interested in India’s infrastructure growth story and are seeking structured partnerships to deploy capital at scale.
| Photo Credit:
Foreign investors are exploring co-investment opportunities in India's infrastructure sector with certain governance rights, and the National Investment and Infrastructure Fund (NIIF) is working with regulators to align their requirements with those of other investors, a senior official said on Monday.
National Investment and Infrastructure Fund, MD & CEO, Sanjiv Aggarwal, also said that international investors usually budget for 2-3 per cent annual depreciation in rupee over the long term and want a product which could hedge the dollar-rupee risk.
Addressing the CII Annual Business Summit, Aggarwal said infrastructure sectors in India offer tremendous opportunity and see very significant interest from international investors.
"They want to come in. It is now for us to form good partnerships with them, offer them opportunities to deploy capital at scale," Aggarwal said.
Participating in a discussion titled "The Future of Financing', he said these "sophisticated investors want co-investment to come with certain governance rights".
"Which is something that we are working on. We are working alongside the regulators to align their needs and those of the other investors," Aggarwal said.
Talking about currency risks vis-a-vis foreign investor interest, Aggarwal said it is not as if international pension funds, which are sophisticated investors, are not really worried about the depreciation of the rupee.
"International investors are comfortable budgeting in 2-3 per cent annual depreciation of the rupee over a long-term period... But it has brought forth a conversation about how to hedge the dollar-rupee risk. And we are now getting asked by large companies, our companies, to develop a strategy for giving them a hedged product. That is something we are working on," he said.
NIIF is a sovereign-backed entity established in 2015 to act as a collaborative investment platform for international and domestic investors.
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by ourcommunity guidelinesfor posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.