NIIF targets $3.2 billion infrastructure fund as global investors eye India’s growth story: Report

National Investment and Infrastructure Fund (NIIF) is looking to expand its investor base across Japan, Korea, Australia and Europe as global institutions continue to seek long-term exposure to the country’s infrastructure growth, Bloomberg News reported.

The quasi-sovereign wealth fund announced on Monday that it had secured $2 billion in the first close of its latest infrastructure fund and plans to raise another $1.2 billion within 18 months to reach its $3.2 billion target.

Vinod Giri, managing partner of NIIF’s infrastructure fund, said around $600 million in fresh capital is expected from investors in Japan, Korea, Australia and Europe.

The fundraising comes as India increases infrastructure spending to support economic growth and attract long-term foreign capital into sectors such as clean energy, transportation and digital infrastructure.

“Most of the global investors are looking at doubling, tripling their investment in infrastructure in India” over the next five to seven years, Giri said.

India’s infrastructure market, policy stability and successful investment exits are helping global institutions look beyond near-term currency concerns, he added.

Infrastructure spending drives investor interest

The government has significantly increased capital expenditure on infrastructure over the past decade. Government capital spending has risen more than sixfold to Rs 12.2 trillion ($128 billion) in fiscal 2026-27, compared with fiscal 2014-15.

Global investors have also committed billions of dollars to Indian roads, renewable energy projects, warehouses and data centres, complementing the government’s infrastructure push.

NIIF is positioning its latest fund to participate in this expansion, with data centres expected to be a major focus.

Data centres, energy and transport in focus

NIIF expects to deploy “sizable capital” in the data-centre sector in the coming months, according to Giri. The fund will also target energy, transport, urban infrastructure and electric mobility.

However, investment returns will ultimately depend on project execution, including selecting the right partners and structuring projects effectively, Giri said.

NIIF’s first infrastructure fund raised $2.3 billion and invested across transport, energy and digital infrastructure.

NIIF expands its global investment role

Established by the Narendra Modi-led government in 2015, NIIF has become an important channel for sovereign wealth funds and pension funds seeking exposure to India’s infrastructure and private markets.

The fund currently manages around $7 billion in equity capital commitments across infrastructure, private markets, growth equity and climate investments. NIIF has previously outlined plans to increase its assets under management to $10 billion.

The latest fundraising signals continued institutional confidence in India’s long-term infrastructure opportunity, even as global investors remain attentive to currency and geopolitical risks.