The government has started examining the feasibility of establishing a large sovereign wealth fund (SWF) for India. The idea is to create a robust and permanent stream of revenue to the exchequer other than tax receipts, by way of returns from SWF’s diversified investments abroad.

Though the discussions are at an early stage, there is consensus that in order to serve the purpose, the initial size of such a fund could be in the region of $50 billion at least.

An SFW invests in strategic sectors, domestically and globally to secure the host country’s national interests and support economic growth . India being a fiscally constrained country with multiple development challenges, the SWF would also help generate resources for socio-economic programmes on a sustained basis, people aware o

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