CII Proposes Sovereign-Backed Fund to Build India's Growth and Global Influence

• CII urges government to set up India Development and Strategic Fund (IDSF) for long-term national and global investments.
• Fund aims to build a corpus of $1.3-2.6 trillion by 2047 through asset monetisation and equity transfers.
• IDSF to finance domestic infrastructure and strategic overseas acquisitions in critical sectors.

The Confederation of Indian Industry (CII) has proposed the creation of an India Development and Strategic Fund (IDSF) to finance the country’s long-term growth and strengthen its global economic position. The professionally managed fund would focus on building national capacity and securing critical assets abroad.

CII suggested that the fund could raise a corpus of $1.3-2.6 trillion by 2047, similar to leading sovereign funds worldwide. It would be financed through asset monetisation of roads, ports, spectrum, and government equity transfers from select public sector enterprises.

The IDSF would operate through two arms, a developmental arm for financing infrastructure, clean energy, logistics, MSME expansion, and social sectors, and a strategic arm for acquiring overseas assets in critical minerals, energy, and frontier technologies like semiconductors and AI.

CII said India’s National Investment and Infrastructure Fund (NIIF) could evolve into the developmental arm, using its existing governance and investor network.

Chandrajit Banerjee, Director General of CII, said, “India is entering a decisive window of opportunity. To reach developed-economy status by 2047, we need perpetual sources of long-term capital that go beyond the annual budget cycle”.

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CII recommended creating a statutory framework for IDSF to ensure transparency, professional management, and sovereign control. It would also issue green, infrastructure, and diaspora bonds to attract domestic and global investors.