Finshots Daily Can LIC be India’s sovereign wealth fund?
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Nov 23, 2025 Explore the complexities of India's potential sovereign wealth fund landscape. Discover why India lacks a sovereign wealth fund and the intricacies of the National Investment and Infrastructure Fund. Dive into the government's proposal for a $50 billion Bharat Sovereign Fund and the debate surrounding its funding. Examine whether LIC could fill this role, while understanding the risks and constraints involved. Finally, learn about potential funding sources and what a dedicated sovereign wealth fund should entail.
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NIIF Is A Quasi‑Sovereign Infrastructure Vehicle
- NIIF is a quasi-sovereign vehicle focused on domestic infrastructure rather than a traditional SWF chasing foreign assets.
- It pools government seed and majority private institutional capital to mobilize infrastructure investment.
Bharat SWF Proposal Sparks Funding Questions
- The government proposed a $50 billion Bharat Sovereign Wealth Fund to emulate economies that deploy national savings globally.
- Debates immediately focused on funding sources, fiscal prudence and India's ability to generate surplus dollars.
LIC's Size Gives It Sovereign‑Like Influence
- LIC's AUM and frequent role in stabilizing markets make it appear like a sovereign investor at times.
- Its scale allows concentrated bets, a trait typically associated with sovereign wealth funds.