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Sovereign funds view India as a long-term opportunity

Mint New Delhi

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August 25, 2025

Financial services cos attracted lion's share of foreign capital flows into India in recent years

- Rhik Kundu

Sovereign wealth funds and global pension funds have gradually ramped up their investments in India, channeling crucial capital into key sectors such as finance, manufacturing, and infrastructure even as global uncertainties have left foreign investors shaken.

Financial services companies attracted the lion's share of foreign capital flows into India in recent years, two Union government officials said citing finance ministry data.

Investments by sovereign wealth funds in India's financial services sector climbed from ₹2,688 crore in 2020-21 to ₹16,228 crore in 2024-25, according to the officials, who requested anonymity. Investments by global pension funds, however, dropped from ₹16,627 crore in 2020-21 to ₹12,626 crore in 2024-25.

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