The National Investment and Infrastructure Fund (NIIF) has launched a $600-million India-Japan Fund with the Indian government and the Japan Bank for International Cooperation (JBIC) as anchor investors, the finance ministry said on Wednesday.
The fund will focus on investing in environmentally sustainable and low-carbon emission strategies besides further boosting Japanese investments into India, according to the ministry’s statement.
This is the NIIF’s first bilateral fund, with the Indian government contributing 49% of the target corpus and the JBIC 51%. The fund will be managed by NIIF and JBIC IG, an arm of JBIC.
NIIF is an alternative asset manager backed by the Indian government, which invests in the country’s infrastructure sector and in growth equity. It has assets worth more than $4.3 billion under management. JBIC is a public financial institution of Japan whose outstanding loans and equity participation were worth about $107 billion as of march 2023.
“This joint initiative signals a key dimension of collaboration between the two countries in an area that is a shared priority viz. climate and environment,” the ministry said in the statement.