Lok Sabha Question No. 341 (STARRED), answered on 2025-08-18
Subject: Sovereign Wealth Funds and Global Pension Funds
Ministry: FINANCE
Asked by: Thiru Arun Nehru

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA

## STARRED QUESTION NO . * 341 TO BE ANSWERED ON MONDAY, AUGUST 18, 2025

## Sovereign Wealth Funds and Global Pension Funds

## * 341 . Thiru Arun Nehru :

## Will the Minister of FINANCE be pleased to state :

- ( a ) the details and the list of the investments through Sovereign Wealth Funds ( SWFs ) and global pension funds in the country, sector -wise; ( b ) the details of the quantum of Foreign Direct Investment ( FDI ) or portfolio investment made by  SWFs and global pension funds in the country during the last five financial years, State and year -wise; ( c ) the  steps  taken  by  the  Government  to  attract  SWFs  and  global  pension  funds  to invest in the infrastructure and real estate sectors of the country; the measures taken by the Government to improve the regulatory clarity for SWFs
- ( d ) and global pension funds investing in the country; and
- ( e ) whether the Government proposes to expand the list of sectors for 100 per cent FDI through automatic route for long -term investors like SWFs, if so, the details thereof?

## ANSWER

## FINANCE MINISTER )

( SMT . NIRMALA SITHARAMAN

- (a) to ( e ): A Statement is laid on the table of the House .

## STATEMENT REFFERED TO IN REPLY TO LOK SABHA STARRED QUESTION NO . * 341 RAISED BY THIRU ARUN NEHRU, HON ' BLE MEMBER OF PARLIAMENT TO BE ANSWERED ON 18 . 08 . 2025 REGARDING SOVEREIGN WEALTH FUNDS AND GLOBAL PENSION FUNDS .

( a ) & ( b ). Sovereign  Wealth  Funds ( SWFs ) and  global  pension  funds  can  invest  into country  as  Foreign  Direct  Investment ( FDI ) or  Foreign  Portfolio  Investment ( FPI ). FDI inflows from SWFs and global pension funds are not recorded as distinct category . Net FPI by SWFs and global pension funds in the country during the last five financial years, sector and year -wise are at Annexure -A .

- ( c ) The FDI policy is reviewed on an ongoing basis, and amended from time to time to ensure  that  India  remains  an  increasingly  attractive  and  investor -friendly investment destination for long term investors including SWFs and global pension funds . Some of the specific benefits provided to notified SWFs and pension funds include :
- ( i ) Section 10 ( 23FE ) of the Income Tax Act, introduced in 2020, grants tax exemption, to notified  SWFs  and  pension  funds  on  dividends,  interest,  and  long -term  capital  gains from  specified infrastructure investments  in India . This  exemption  has  now  been extended until 31 March 2030 .
- ( ii ) The  International  Financial  Services  Centre  Authority ( IFSCA ) ,  has  provided  for  a specialized  framework  to  facilitate  participation  by  SWFs  in  International  Financial Services  Centre ( IFSC ) ,  wherein  such  provisions  which  are  not  deemed  relevant  to them  have  been  exempted . For  instance,  the  restriction  that  certain  schemes  should only be close -ended was dispensed with for SWFs, and they were enabled to set -up open -ended  schemes  in  IFSC,  paving  way  for  setting  up  long  term  vehicles  for investments into India  and other  geographies . Similarly,  to  provide  wider  avenues  for investments  by  SWFs,  the  ceiling  on  investments  in  securities  of  unlisted  companies were also done away with for SWFs .

( d ) The  Government  has  taken  several  steps  to  boost  and  attract  more  investments including  investment  from  SWFs  and  global  pension  funds  across  the  sectors . This includes removing regulatory barriers, streamlining processes, developing infrastructure, bettering logistics and improving the business environment by enhancing the Ease of Doing Business ( EoDB ) among others . Under,  the  Regulatory  Compliance  Burden ( RCB ) initiative  government  works  with various Ministries, Departments, and States / UTs to reduce the compliance burden on citizens and businesses . The goal is to enhance Ease of Doing Business and Ease of Living through four key strategies : Simplification of procedures, Rationalization of laws, Digitization of processes, and Decriminalization of minor offences . Regulatory Compliance ( RC ) Portal has been developed by Department for Promotion of Industry and  Internal  Trade ( DPIIT ) for  tracking  action  taken  by Ministries / Departments  and States / UTs  to  reduce  compliance  burden . Through  active  self -assessment initiatives, over  45,000  compliances  have  been  reduced . Among  these,  16,028  were  simplified, 22,280digitized, 4,024 decriminalized, and 2,909 redundant compliances eliminated To  enhance  Ease  of  Living  and  Ease  of  Doing  Business,  the  Central Government, through the Jan Vishwas ( Amendment of Provisions ) Act, 2023, has decriminalized 183 provisions across 42 Central Acts administered by 19 Ministries / Departments . Securities and Exchange Board of India ( SEBI ) has taken several steps to promote FPI inflows which  include  enhancing ease of doing business for FPIs by simplifying the on -boarding  & registration procedure, permitting FPIs to participate in Exchange Traded Commodity Derivatives in India, enabling participation by Non -Resident Indians ( NRIs ) , Overseas Citizens of India ( OCIs ) and Resident Indian ( RI ) individuals in SEBI registered FPIs  based  in  International  Financial  Services  Centers  in  India  and  provision  of  a framework for reclassification of FPI investment to FDI . ( e ) Government has put in place an investor friendly policy, wherein most sectors except certain strategically important sectors are open for 100 % FDI under the automatic route . More than 95 % of the FDI inflow is received under the automatic route . India continues to open up its economy to global investors, including SWFs and global pension funds, by raising FDI limits, developing infrastructure and improving business environment . For instance, the Union Budget 2025 announced for the further increase of FDI sectoral cap for the insurance sector from 74 % to 100 %.

*******

Net Foreign Portfolio Investment by SWFs and pension funds in the country during the last five financial years, sector and year -wise :

## Sovereign Wealth funds investment details -Year wise and sector wise

( Figures in INR Crore )

|   S . No | Sector                             | 2020 - 21   | 2021 - 22   | 2022 - 23   | 2023 - 24   | 2024 - 25   |
|----------|------------------------------------|-------------|-------------|-------------|-------------|-------------|
|        1 | Automobile and Auto Components     | 1,562       | 1,823       | 1,033       | - 1,856     | - 5,317     |
|        2 | Banks                              | 11          | 12          | -           | -           | -           |
|        3 | Capital Goods                      | 502         | 1,104       | 1,350       | 3,084       | 3,626       |
|        4 | Chemicals                          | 414         | 172         | 463         | 1,127       | 1,337       |
|        5 | Chemicals & Petrochemicals         | -           | 24          | -           | -           | -           |
|        6 | Coal                               | -           | -           | -           | -           | -           |
|        7 | Commercial Services & Supplies     | -           | -           | -           | -           | -           |
|        8 | Construction                       | 692         | 265         | - 127       | - 382       | - 4,963     |
|        9 | Construction Materials             | 317         | - 852       | 1210        | - 1,141     | 808         |
|       10 | Consumer Durables                  | 277         | - 195       | 564         | 1,925       | - 2,072     |
|       11 | Consumer Services                  | - 514       | 331         | 2,057       | 4,542       | 3,240       |
|       12 | Diversified                        | - 38        | 63          | 98          | - 54        | 21          |
|       13 | Diversified Consumer Services      | -           | -           | -           | -           | -           |
|       14 | Fast Moving Consumer Goods         | 911         | - 1,519     | 1,219       | - 611       | - 4,118     |
|       15 | Financial Services                 | 2,688       | - 801       | 2,243       | 13,283      | 16,228      |
|       16 | Food, Beverages & Tobacco          | -           | -           | -           | -           | -           |
|       17 | Forest Materials                   | - 22        | 30          | 17          | 45          | 45          |
|       18 | General Industrials                | 26          | -           | -           | -           | -           |
|       19 | Healthcare                         | - 591       | 1,632       | 1,047       | 2,152       | 39          |
|       20 | Healthcare Services                | 82          | -           | -           | -           | -           |
|       21 | Hotels, Restaurants & Tourism      | 326         | - 474       | - 22        | -           | -           |
|       22 | Household & Personal Products      | -           | -           | -           | -           | -           |
|       23 | Information Technology             | - 1,954     | - 6,233     | - 3,160     | 88          | - 2,845     |
|       24 | Media, Entertainment & Publication | 27          | 361         | 97          | - 331       | - 98        |
|       25 | Metals & Mining                    | 107         | - 577       | 200         | 204         | 16          |
|       26 | Oil & Gas                          | - 143       | - 750       | -           | -           | -           |
|       27 | Oil, Gas & Consumable Fuels        | 2,900       | - 1,057     | - 1,328     | 2,534       | - 3,826     |

| 28   | Other Financial Services         | -       | -        | -       | -      | -     |
|------|----------------------------------|---------|----------|---------|--------|-------|
| 29   | Others                           | - 2,165 | - 3,993  | - 6,042 | 8,406  | - 192 |
| 30   | Pharmaceuticals & Biotechnology  | - 25    | 13       | -       | -      | -     |
| 31   | Power                            | - 117   | - 184    | - 408   | 5,876  | 470   |
| 32   | Realty                           | 231     | 330      | 851     | 380    | 2,321 |
| 33   | Retailing                        | -       | 6        | 295     | -      | 103   |
| 34   | Services                         | 68      | - 414    | 1,501   | 785    | 1,253 |
| 35   | Software & Services              | - 108   | - 22     | -       | -      | -     |
| 36   | Telecommunication                | 2,738   | - 1,626  | 378     | 7,456  | 2,593 |
| 37   | Textiles                         | - 133   | 10       | 114     | 52     | - 92  |
| 38   | Textiles, Apparels & Accessories | 21      | 13       | -       | -      | -     |
| 39   | Transportation                   | 15      | 52       | -       | -      | -     |
| 40   | Utilities                        | - 70    | 8        | 8       | 39     | - 152 |
|      | Total                            | 8,035   | - 12,450 | 3,658   | 47,604 | 8,426 |

Source :

NSDL

## Pension funds investment details -Year wise and sector wise

( Figures in INR Crore )

|   S . No | Sector                         | 2020 - 21   | 2021 - 22   | 2022 - 23   | 2023 - 24   | 2024 - 25   |
|----------|--------------------------------|-------------|-------------|-------------|-------------|-------------|
|        1 | Automobile and Auto Components | 3,401       | - 2,336     | 554         | 3,590       | 3,990       |
|        2 | Banks                          | 8           | -           | -           | -           | -           |
|        3 | Capital Goods                  | 1,497       | 531         | 2,560       | 3,017       | 5,647       |
|        4 | Chemicals                      | 1,446       | 845         | 482         | 179         | 1,675       |
|        5 | Chemicals & Petrochemicals     | 4           | 43          | 4           | -           | -           |
|        6 | Coal                           | -           | -           | -           | -           | -           |
|        7 | Commercial Services & Supplies | -           | -           | -           | -           | -           |
|        8 | Construction                   | 931         | 672         | 716         | 688         | - 32        |
|        9 | Construction Materials         | 1,697       | - 261       | - 406       | 734         | - 336       |
|       10 | Consumer Durables              | 1,882       | 299         | - 2,835     | 1,302       | 3,491       |
|       11 | Consumer Services              | 1,152       | 647         | 2,057       | 1,929       | - 579       |
|       12 | Diversified                    | - 28        | - 62        | 20          | 21          | 109         |
|       13 | Diversified Consumer Services  | -           | -           | -           | -           | -           |

| 14   | Fast Moving Consumer Goods         | 3,328   | 1,298   | 1,846   | 2,353   | 434     |
|------|------------------------------------|---------|---------|---------|---------|---------|
| 15   | Financial Services                 | 16,627  | - 6,922 | - 5,505 | 310     | 12,626  |
| 16   | Food, Beverages & Tobacco          | -       | - 8     | -       | -       | -       |
| 17   | Forest Materials                   | - 39    | - 18    | 157     | 11      | 141     |
| 18   | General Industrials                | 84      | 5       | -       | -       | -       |
| 19   | Healthcare                         | 1,990   | - 676   | 370     | 3,241   | 7,916   |
| 20   | Healthcare Services                | 132     | -       | -       | -       | -       |
| 21   | Hotels, Restaurants & Tourism      | 250     | - 154   | - 13    | -       | -       |
| 22   | Household & Personal Products      | -       | -       | -       | -       | -       |
| 23   | Information Technology             | 6,376   | - 5,828 | - 8241  | 6,298   | 1,275   |
| 24   | Media, Entertainment & Publication | - 19    | - 493   | 603     | - 565   | 384     |
| 25   | Metals & Mining                    | 614     | 3,145   | 356     | 576     | 3,020   |
| 26   | Oil & Gas                          | 81      | 18      | -       | -       | -       |
| 27   | Oil, Gas & Consumable Fuels        | 4,442   | 3,845   | 572     | 5718    | - 3,669 |
| 28   | Other Financial Services           | - 1     | -       | -       | -       | -       |
| 29   | Others                             | 3,660   | 3,955   | - 2,688 | - 2,262 | 29,294  |
| 30   | Pharmaceuticals & Biotechnology    | 219     | - 281   | -       | -       | -       |
| 31   | Power                              | 623     | 2,036   | 2,680   | 3,298   | - 984   |
| 32   | Realty                             | 446     | 24      | 397     | 1379    | 3,332   |
| 33   | Retailing                          | -       | -       | -       | -       | 58      |
| 34   | Services                           | 756     | - 213   | 906     | 2,010   | 1,810   |
| 35   | Software & Services                | 25      | - 74    | -       | -       | -       |
| 36   | Telecommunication                  | 1,305   | 2,326   | - 990   | 887     | 4,514   |
| 37   | Textiles                           | 186     | 286     | - 450   | 76      | 627     |
| 38   | Textiles, Apparels & Accessories   | 54      | 140     | -       | -       | -       |
| 39   | Transportation                     | 5       | 5       | -       | -       | -       |
| 40   | Utilities                          | - 8     | 64      | - 4     | 29      | 177     |
|      | Total                              | 53,125  | 2,855   | - 6,851 | 34,820  | 74,920  |

Source : NSDL

*****