Copyright knnindia
New Delhi, Nov 10 (KNN) The Confederation of Indian Industry (CII) has proposed the creation of a professionally managed India Development and Strategic Fund (IDSF) to support the nation’s long-term growth and strengthen its economic security overseas. The industry body stated that a twin-arm fund structure is required to mobilise patient, long-term capital to expand productive capacity domestically while securing strategic assets abroad. According to CII, the IDSF could build a managed corpus of USD 1.3–2.6 trillion by 2047 with disciplined capital mobilisation, placing it on par with major global sovereign investment funds. The proposal includes an initial budgetary allocation to establish credibility, followed by directing a portion of revenues from asset monetisation — including roads, ports, transmission assets and spectrum — into the fund instead of one-time deficit reduction, PTI reported. Over time, select public-sector equity could also be transferred to the IDSF, enabling public enterprises to serve as instruments for global expansion. CII further recommended that the fund issue long-tenor instruments such as infrastructure, green and diaspora bonds and co-invest alongside global institutional partners. Once macroeconomic buffers strengthen, a calibrated portion of foreign-exchange reserves could be deployed for overseas acquisitions in critical sectors such as energy and minerals. CII Director General Chandrajit Banerjee said India requires a structural pool of capital beyond the annual budget cycle to meet its development ambitions as it targets developed-economy status by 2047. “This is not about more borrowing; it is about better capital structuring — recycling our existing national strength into future assets instead of one-time fiscal use,” he emphasised. The proposed IDSF would comprise a developmental arm focused on long-gestation domestic priorities — including infrastructure, clean energy, logistics, MSME growth, manufacturing, education, healthcare and urban development — providing patient equity and blended finance while crowding in institutional investors. CII suggested that the National Investment and Infrastructure Fund could evolve into this arm, leveraging existing governance frameworks and investor relationships. A strategic investment arm would acquire overseas assets critical to India’s long-term interests, including energy fields, LNG and hydrogen infrastructure, critical minerals, frontier technologies such as semiconductors and biotechnology, and port and logistics assets. This would allow India to take proactive ownership in key global supply chains rather than relying solely on import arrangements. The proposal includes a statutory framework defining the fund’s mandate, capital sources, withdrawal norms and governance. CII recommended majority government ownership alongside a professional board and independent audit mechanisms, with withdrawal caps to prevent fiscal misuse. The fund would publish periodic performance reviews to ensure transparency. Banerjee added that public-sector enterprises, backed by IDSF capital, could play a pivotal role in expanding India’s economic footprint abroad.
