New Delhi: The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved an additional government investment of Rs. 30,000 crore in the National Investment and Infrastructure Fund (NIIF), doubling the Centre’s total commitment to Rs. 60,000 crore.
The decision is aimed at boosting investments in infrastructure and other nationally important sectors while attracting greater private and global capital into India’s growth story.
NIIF, India’s sovereign-anchored investment fund, is professionally managed by National Investment and Infrastructure Fund Limited, with the government of India holding a 49% stake, according to an official statement.
The fund currently manages capital commitments of around Rs. 40,000 crore across multiple investment strategies and has returned nearly Rs. 12,000 crore to investors through major portfolio exits.
The additional allocation will primarily support the launch of NIIF Infrastructure Fund II, the successor to its flagship infrastructure fund. The proposed fund is expected to have a target corpus of around Rs. 30,000 crore and will invest in transportation, energy, digital infrastructure, urban infrastructure, and emerging sectors such as electric mobility.
The government said the allocation will also back NIIF’s new investment strategies and successor bilateral and strategic funds.
NIIF has attracted investments from leading sovereign wealth funds, pension funds, multilateral institutions and domestic financial institutions, including Abu Dhabi Investment Authority, AustralianSuper, CPP Investments, Ontario Teachers’ Pension Plan, PSP Investments, U.S. International Development Finance Corporation, Axis Bank, HDFC Group, ICICI Bank, Kotak Mahindra Life Insurance and State Bank of India.
According to the government, the participation of investors from countries such as Australia, Canada, Japan, Singapore, the UAE, and the US reflects strong global confidence in India’s economic growth and NIIF’s governance framework.
NIIF currently operates four investment strategies covering infrastructure, private markets, growth equity and climate investments through the India-Japan business corridor.
Its first infrastructure fund, with a corpus of Rs. 16,000 crore, has invested in roads, ports and logistics, airports, renewable energy, smart meters, power transmission and digital infrastructure. Its Private Markets Fund has supported alternative investment funds focused on climate, affordable housing, healthcare, and venture capital.
The Strategic Opportunities Fund has invested in sectors such as financial services, healthcare and manufacturing, while the India-Japan Fund focuses on climate, the circular economy, energy transition and projects strengthening the India-Japan business corridor.
Collectively, NIIF-managed funds have invested across transportation, energy transition, healthcare, digital infrastructure, electric mobility, affordable housing, manufacturing, and technology projects in several states and Union Territories.
These investments support flagship initiatives such as Gati Shakti, Digital India, Make in India, FAME and PM E-DRIVE, besides contributing to India’s climate commitments.
Apart from investing, NIIF also advises central and state governments on public-private partnership projects and investment frameworks. Its advisory work has included support for the Maritime Development Fund, the Research Development and Innovation Fund, asset monetisation initiatives and other sector-specific investment programmes.
The government said the additional investment is expected to accelerate infrastructure development, generate direct and indirect employment, attract private capital and strengthen key sectors, supporting the country’s vision of becoming a Viksit Bharat by 2047.
