Investment Models

📊 High-Yield Data & Statistical Fact Sheet

Cue Words	Notes
Investment GDP Identity	**GDP Identity**: **GDP** = **C** + **G** + **I** + **NX** (where **I** = Gross Investment / Capital Formation).
Prohibited FDI Sectors	Lottery, Gambling/Casinos, Chit Funds, Nidhi Companies, TDR trading, Tobacco Mfg, Atomic Energy, Railway Operations.
ICOR Capital Efficiency	**ICOR** = [ (**Annual Capital Investment**) ÷ (**Annual Increase in GDP**) ] UPSC Rule: Lower ICOR is preferred (denotes less capital required per unit of growth).
Viability Gap Funding (VGF)	Central grant of up to 20% of project cost for commercially unviable but socially essential infrastructure.
National Monetisation Pipeline 2.0 (NMP 2.0)	Launched **Feb 2026** by FM Nirmala Sitharaman, targeting **₹16.72 Lakh Crore** in asset-monetisation potential over **FY26-FY30** (incl. **₹5.8 Lakh Crore** private investment). Top sectors: Highways/logistics/ropeways (₹4.42L Cr), Ports (₹2.63L Cr), Power (₹2.76L Cr), Railways (₹2.62L Cr), Coal (₹2.16L Cr). **Expected impact**: Central proceeds of **~₹4.6 Lakh Crore** (FY26-30); NITI Aayog estimates a potential **₹40 Lakh Crore** GDP boost over 5-10 years. 2026 **NMP 2.0 context & governance**: prepared by **NITI Aayog** per the Union Budget 2025-26 mandate; its ₹16.72 lakh crore target is **~2.6x NMP 1.0's** (a 4-year pipeline with a **₹6 lakh crore** target, which achieved **~90%** of target). Sector-wise share: Highways/MMLPs/Ropeways **26%**, Power **17%**, Ports **16%**, Railways **16%**, Coal **13%**. Governed by an **empowered Core Group of Secretaries on Asset Monetisation (CGAM)**, chaired by the **Cabinet Secretary**. 2021 **NMP 1.0 — the origin launch** (23 Aug 2021, by FM Nirmala Sitharaman): estimated aggregate monetisation potential of **₹6.0 lakh crore** through Central Government core assets over **FY2022-FY2025**, developed by **NITI Aayog** in consultation with infrastructure line ministries per the **Union Budget 2021-22** mandate. Released as **Volume 1** (guidance/conceptual approaches) and **Volume 2** (asset-wise roadmap/pipeline). Covered 12+ line ministries and 20+ asset classes across roads, ports, airports, railways, warehousing, gas & product pipelines, power generation/transmission, mining, telecom, stadiums, hospitality, and housing; top 5 sectors captured **~83%** of pipeline value, with Roads alone at **27%**. The ₹6.0 lakh crore figure was **~14%** of the Centre's proposed outlay under the **National Infrastructure Pipeline (NIP, ₹43 lakh crore)**. Key principle: monetisation via **structured contractual partnerships**, not privatization or slump sale — asset ownership stays with Government, with hand-back to the public authority at the end of the transaction life; overseen by the same CGAM structure that later governed NMP 2.0 (above). 2021 **Union Budget 2021-22 — the preceding announcement**: before NMP 1.0's 23 Aug 2021 launch (above), the Budget speech (1 Feb 2021) had already flagged asset-monetisation as a "key monetisation strategy" and specific measures: **5 operational toll roads (₹5,000 crore)** transferred to an **NHAI InvIT**; **transmission assets (₹7,000 crore)** transferred to a **PGCIL InvIT**; **Dedicated Freight Corridor** assets to be monetised by Railways post-commissioning; the **next lot of airports** to be monetised via O&M concession. Future assets flagged for the (then-unnamed) Asset Monetisation Programme: **Oil & Gas Pipelines** (GAIL/IOCL/HPCL), **AAI airports in Tier-II/III cities**, other **Railway infrastructure assets**, **warehousing assets of CPSEs** (Central Warehousing Corporation, NAFED), and **sports stadiums**.
National Land Monetization Corporation (NLMC)	2022 **Cabinet approval**: NLMC approved (9 March 2022; reported to Rajya Sabha 29 March 2022) as a **wholly Government of India-owned company** — initial authorized share capital **₹5,000 crore**, paid-up share capital **₹150 crore** — in pursuance of the **Union Budget 2021-22** announcement. Distinct from (and a land-specific complement to) the broader NMP: NLMC focuses on monetizing **surplus land and building assets** of CPSEs, not their operating infrastructure assets. 2022 **Purpose & objectives**: professional/orderly monetization of surplus non-core land-building assets of **CPSEs under closure** and surplus land of **100% GoI-owned CPSEs under strategic disinvestment**; advises/supports monetization of surplus land of demerged companies and other CPSEs; advises government departments, statutory bodies, and autonomous bodies on monetizing surplus non-core assets; builds an inventory of surplus land/building assets in consultation with CPSEs; acts as a repository of best practices in land monetization, assisting **DPE** and **DIPAM**. 2022 **Governance**: administered by a **Board of Directors** mixing senior government officials and eminent professionals from real estate, banking, investment banking, construction, and law, chaired by an eminent professional; incorporation steered by the **Department of Public Enterprises (DPE), Ministry of Finance**.
Development Financial Institution (DFI) — Union Budget 2021-22 Origin	2021 Budget speech (1 Feb 2021) announced **₹20,000 crore** to set up and capitalise a new **Development Financial Institution (DFI)** to act as infrastructure-financing provider/enabler/catalyst, with a **₹5 lakh crore lending portfolio** targeted within 3 years. This DFI later became **NaBFID** (see the "Evolution of Development Financial Institutions (DFIs)" Cornell row in the Money & Banking notes for its 2021 Act-based establishment and authorised capital details). 2021 Same Budget also proposed amending **InvIT/REIT legislation** to enable debt financing of InvITs/REITs by **Foreign Portfolio Investors (FPIs)** — widening the investor base for the infrastructure InvITs referenced above (NHAI, PGCIL).

1. THE SAVINGS-INVESTMENT LINK & EFFICIENCY METRICS

Cue Words	Notes
Keynesian Investment Multiplier	**Investment Multiplier** = 1 ÷ (1 − **MPC**) = 1 ÷ **MPS**
FDI Definition	Long-term, non-debt capital (≥ 10% equity in listed company or any equity in unlisted firm). **FY25-26 inflows**: **$58.85 Billion** (+18% YoY) per DPIIT; Computer Software/Hardware led sectoral inflows (**$13.9B**), Singapore remained the top source country (**$19.8B**). **UNCTAD World Investment Report 2026**: India ranked **11th globally** as an FDI destination in 2025.
FPI Definition	Portfolio investment (< 10% equity in listed firm).
FDI Growth Trend & Routes	**Net FDI trend**: Grew from **$3.7 Billion (2004-05)** to **$36.6 Billion (2021-22)**, though the latter was 16.7% lower than the prior year. **Automatic Route**: No prior Govt/RBI approval needed; Indian recipient firm must report to RBI within **30 days** of receiving share application money, and again upon share issuance. **Government Route**: Required for sectors outside the automatic list; proposals with foreign equity infusion **>₹5,000 crore** need Cabinet Committee on Economic Affairs (CCEA) clearance. FDI from **Pakistan** is always routed via the Government route.
Types of FDI (with Examples)	**Greenfield FDI**: Parent builds a subsidiary from scratch (e.g. McDonald's, Hyundai India, Pepsi India). **Brownfield FDI**: MNC buys stake in an existing host-country firm (e.g. Daiichi Sankyo of Japan acquiring Ranbaxy India). **Joint Venture**: Foreign + local firm share investment/technology/profits (e.g. Hero Honda).
Sector-wise FDI Caps (Select)	**100% Automatic**: Agriculture, Mining, Petroleum & Natural Gas, Broadcasting, Civil Aviation-Airports, Construction Development, Telecom, E-commerce (marketplace), Duty Free Shops, Railway Infra, Asset Reconstruction Cos, Pharma (Greenfield). **Government route/capped**: Print Media (26%), Multi-Brand Retail (51%, Govt), Defence (74% Automatic/100% Govt), Insurance (74% Automatic — since raised to 100%, see below), Banking-Private (74%, Automatic up to 49%), Banking-Public (20%, Govt), Pension (49%).
India's FDI Inflow, FY2024-25 (Commerce Ministry, Provisional)	2025 **Total FDI inflow**: **USD 81.04 billion** (provisional), a **14% increase** from **USD 71.28 billion** in FY2023-24. **Services sector** was the top recipient (**19% share**), rising **40.77% to $9.35 billion**; **Manufacturing FDI** grew **18% to $19.04 billion**. **State-wise**: **Maharashtra** led with **39% share**, followed by **Karnataka (13%)** and **Delhi (12%)**. **Country-wise**: **Singapore** led with **30% share**, followed by **Mauritius (17%)** and **USA (11%)**. Over **FY2014-25 (11 years)**, India attracted **$748.78 billion** FDI — a **143% increase** over the prior 11 years (**$308.38 billion in FY2003-14**) — constituting **~70%** of the total **$1,072.36 billion** FDI received over the past 25 years. Source countries for FDI grew from **89 (FY2013-14)** to **112 (FY2024-25)**. **2025 Union Budget** proposed raising the **FDI limit in insurance from 74% to 100%** for companies investing their entire premium within India.
100% FDI in Insurance (Sabka Bima Sabki Raksha Act)	FDI limit in insurance raised to 100% (from 26%→49% in 2015, 49%→74% in 2021); amends Insurance Act 1938, LIC Act 1956, IRDAI Act 1999. Net owned fund requirement for foreign reinsurance branches cut from ₹5,000 crore to ₹1,000 crore; foreign insurers can now enter without domestic partners. IRDAI empowered to disgorge wrongful gains; max penalty on intermediaries raised from ₹1 crore to ₹10 crore. Premiums collected from Indians by foreign insurers must be retained within India.

2. THE PPP ARCHITECTURE: EPC, BOT & HAM MODELS

Cue Words	Notes
EPC Model	100% government-funded; private contractor assumes design and construction risk, handing asset back to Govt upon completion.
BOT-Toll Model	Private developer builds, operates, and recovers investment via toll collection (traffic risk borne by developer).
BOT-Annuity Model	Developer builds, Govt pays fixed periodic annuity payments (traffic risk borne by Govt).
Induced vs. Autonomous Investment	**Induced Investment**: Income-dependent and profit-driven. Fluctuates directly with aggregate demand and business profitability. **Can be negative** during severe economic depressions. **Autonomous Investment**: Income-inelastic investment independent of profit levels or economic cycles. Primarily undertaken by the state for public infrastructure and social welfare.
PPP Contract Variants (BOT, DBFOT, BLT, BROT)	**DBFOT (Design-Build-Finance-Operate-Transfer)**: Developer bears complete financing, design, construction, operation, and toll collection risk before transferring back to state. **BLT (Build-Lease-Transfer)**: Developer builds asset and leases it to government for periodic rent. **BROT (Build-Rehabilitate-Operate-Transfer)**: Private entity refurbishes an existing dilapidated public asset, operates it for a concession period, and transfers it back. **Concession Agreement**: Legal contract granting private operator long-term rights to operate, maintain, and collect revenue from a public utility asset.
BOOT (Build-Own-Operate-Transfer) vs plain BOT	Private party builds, owns, operates and maintains the asset for the concession period before transferring it to government — unlike plain BOT (no interim private ownership), BOOT's interim ownership lets the developer pledge the asset itself as loan collateral, easing bank financing. First Indian example: Delhi-Noida Direct (DND) Flyway (opened 2001).
Special Purpose Vehicle (SPV)	A company incorporated under the Companies Act for a single, well-defined project only (narrower scope than a general-purpose company's MoA); sponsors hive off project assets/liabilities into the SPV, isolating it from the parent's financial performance — this isolation is what gives lenders comfort and is why virtually every PPP project is executed through a dedicated SPV.
Vijay Kelkar Committee Recommendations (2015)	**Risk Allocation**: Shift from 'one-size-fits-all' to equitable risk sharing. **Renegotiation Framework**: Allow structured renegotiation of long-term contracts due to unforeseen market changes. **Institutional Setup**: Establish **3PI (Infrastructure PPP Institute)** and Infrastructure Appellate Tribunal. **Anti-Corruption Safeguards**: Amend Prevention of Corruption Act (PCA) to protect honest civil servants taking bona fide commercial decisions.
Swiss Challenge Method	An unsolicited project proposal submitted by a private developer is published by the government to invite competitive counter-bids. If a superior counter-bid emerges, the original proposer is given the Right of First Refusal to match the best counter-bid to secure the contract.
Harrod-Domar & Feldman-Mahalanobis Growth Models	**Harrod-Domar Model**: Economic growth rate ($g$) is directly proportional to Savings Rate ($s$) and inversely proportional to Capital-Output Ratio ($v$): **g = s / v**. **Feldman-Mahalanobis Model**: Multi-sector model prioritizing heavy capital goods industries to build long-term domestic industrial capacity.
Lewis Surplus Labour & Solow-Swan Models	**Lewis Model**: Dual-sector model explaining industrialization through the transfer of zero-marginal-productivity surplus agricultural labor into high-productivity manufacturing. **Solow-Swan Model**: Neoclassical model highlighting technological progress as the primary driver of sustained long-term per-capita GDP growth under diminishing returns to capital.
Management Contract	Private operator manages a publicly-owned asset for a fee (fixed and/or performance-linked), without taking on ownership, financing, or major investment risk.
Private Finance Initiative (PFI)	PPP variant where the private party finances, builds, and operates public infrastructure, recovering costs via long-term service-fee payments from the government rather than user tolls.

3. FOREIGN INVESTMENT MECHANICS & STRATEGIC DISINVESTMENT ARCHITECTURE

Cue Words	Notes
'Capital Instruments' — Legal Definition	Equity shares, fully/compulsorily/mandatorily convertible debentures, fully/compulsorily/mandatorily convertible preference shares, and share warrants issued by an Indian company — the FDI/FPI classification turns on which instrument is used plus the stake threshold (≥10% listed-company equity, or any stake in an unlisted firm, = FDI).
'Once FDI, Always FDI' & the 10% Threshold Rule	If an FDI stake later falls below 10%, it continues to be treated as FDI with no obligation to restore it. Conversely, an investor entering below the 10% threshold may still have it treated as FDI provisionally, provided the stake is raised to ≥10% within one year of first purchase (obligation falls on the investee company) — if not raised, it is reclassified as FPI. An investor cannot hold both FDI-route and FPI-route stakes in the same company simultaneously.
Composite Cap & Reporting	Government now prescribes a single composite cap per sector for all foreign investment (FDI + FPI combined) rather than separate limits. Under FEMA 1999, an Indian company receiving FDI/FPI needs no prior RBI approval — only post-facto reporting of the capital inflow and subsequent share issue; DPIIT (Ministry of Commerce & Industry) is the nodal agency setting FDI policy/sectoral rules.
Strategic Disinvestment — Institutional Architecture	**DIPAM** (Dept. of Investment and Public Asset Management, Ministry of Finance) is the nodal department; DIPAM + **NITI Aayog** jointly identify candidate CPSEs for strategic sale, approved by the **CCEA**. An inter-ministerial **"Alternative Mechanism"** decides the quantum/mode/pricing of shares, selection of the strategic buyer, and sale terms — avoiding repeated CCEA approvals for the same CPSE and speeding up decision-making.
Union Budget 2021-22 — Disinvestment & Strategic Sale Targets (Origin Intent)	2021 Budget 2021-22 (1 Feb 2021) estimated **disinvestment receipts of ₹1,75,000 crore (BE 2020-21)**. It targeted completion of **strategic disinvestment** in 2021-22 of: **BPCL, Air India, Shipping Corporation of India, Container Corporation of India, IDBI Bank, BEML, Pawan Hans, Neelachal Ispat Nigam Ltd** — the **IDBI Bank** mention here is the Budget-level intent that **preceded** the CCEA's in-principle approval on 5 May 2021 (see the row below). Beyond IDBI Bank, **2 more Public Sector Banks and 1 General Insurance company** were also targeted for privatisation; an **LIC IPO** was targeted for 2021-22. A **new Strategic Disinvestment Policy** was approved: CPSEs outside the **4 designated "strategic sectors"** (see below) to be privatised; **NITI Aayog** tasked with preparing the next list of CPSEs for strategic disinvestment; central funds proposed to **incentivise States to disinvest their own PSUs**. A **Special Purpose Vehicle** was proposed to monetize idle land assets of CPSEs — this is the origin concept that became the **National Land Monetization Corporation (NLMC)**, given Cabinet approval on 9 March 2022 (see the NLMC row above).
Case Example — IDBI Bank Strategic Disinvestment	2021 Origin CCEA approval (5 May 2021): the Cabinet Committee on Economic Affairs gave in-principle approval for strategic disinvestment of IDBI Bank Ltd, along with transfer of management control. At the time, Government of India (45.48%) and LIC (49.24%) together held 94%+ of IDBI Bank's equity — LIC was the promoter with management control, GoI the co-promoter. LIC's Board separately resolved to reduce its IDBI Bank shareholding via divestment (also consistent with LIC's regulatory mandate to reduce bank shareholding), relinquishing management control alongside the government's stake sale. Rationale: a strategic buyer was expected to infuse funds, new technology, and best management practices, reducing the bank's dependence on LIC/Government support; sale proceeds would finance government development programmes. The exact GoI-vs-LIC split of shares to be divested was left to be decided later in consultation with RBI. (The eventual stake-sale outcome — to a LIC-led consortium — is noted in the Money & Banking Mains file's PSB privatisation debate.)
Four 'Strategic' Sectors (Minimum PSU Presence)	(1) Atomic Energy, Space & Defence; (2) Transport & Telecommunications; (3) Power, Petroleum, Coal & other minerals; (4) Banking, Insurance & Financial Services. Only a bare-minimum public-sector presence is retained in these; remaining CPSEs here are privatised, merged, subsidiarised, or closed. In non-strategic sectors, CPSEs are privatised or closed outright.

4. GLOSSARY: INVESTMENT-VEHICLE RISK TERMS

Cue Words	Notes
Shell Company	A company (often multi-layered subsidiaries) with no genuine manufacturing/service activity, typically used to divert funds or launder money; holds assets mostly "on paper." Not inherently illegal, but often misused to disguise real ownership from regulators/the public.

5. FUNDAMENTALS CHECK — FDI vs FPI & PPP BASICS

Cue Words	Notes
FDI vs FPI — The Core Distinction	**FDI**: Long-term investment giving the investor **control/management influence** over the enterprise (≥10% equity in a listed firm, or any stake in an unlisted firm) — typically illiquid, "sticky" capital tied to physical/productive assets. **FPI**: Short-term, passive investment (<10% equity) in shares/bonds purely for financial returns, with **no management control** — highly liquid and volatile ("hot money"-prone), can exit markets rapidly during shocks.
Automatic vs Government Approval Route — Basic Rationale	**Automatic Route**: Foreign investor/Indian company needs **no prior approval** from Government or RBI — only post-facto reporting; applies to most sectors (economically less sensitive). **Government Route**: Prior approval from the concerned administrative Ministry/Department (via Foreign Investment Facilitation Portal) required before investment — applies to sectors deemed strategically/politically sensitive (defence, media, multi-brand retail) or investments from land-bordering neighbours like Pakistan/China.
Public-Private Partnership (PPP) — Basic Definition & Rationale	An arrangement between a government/public entity and a private-sector company to finance, build, and/or operate a public infrastructure/service project, with defined risk-sharing and revenue/cost arrangements over a concession period. Rationale: brings in private capital + efficiency/technical expertise to bridge the public infrastructure-financing gap, while government retains oversight/ownership of a public asset.

6. PPP/INVESTMENT MODELS — BOT, BOT-ANNUITY, EPC & HAM (SOURCE DETAIL)

Cue Words	Notes
BOT	Developer constructs the road and collects toll; no government payment to the developer.
BOT Annuity	Developer constructs the road, operates it for a few years, then transfers it back to the government. Government starts payment to the developer after the launch of commercial operations of the project.
EPC (Engineering, Procurement, Construction)	**Cost completely borne by the government**; government invites bids for **engineering knowledge** from players. **Raw material + construction costs** etc. are borne by the government; **private sector participation is minimum** (only engineering).
HAM (Hybrid Annuity Model)	**HAM = BOT Annuity + EPC**; **Govt : Private = 40 : 60**. Government provides **40% of project cost in the first 5 years** through annual payments (annuity). **Remaining payment** is made on the basis of **assets created and performance of the developer**. Source note: this source states the **developer is responsible for construction, NOT maintenance** (contrast with the standard HAM description where O&M is annuity-linked — treat the source line as-is).
Escrow Agent in PPP	A **third-party bank account** safeguarding the seller against its buyer's **payment risk**. **Control over cash flows** is given to an **independent agent** (instead of the buyer), who ensures money is given as per agreed terms after the transaction. **Widely used in PPP**.
Swiss-Challenge-style Right of First Refusal in Mining	**National Mineral Policy, 2019** incentivises private investment via a **Right of First Refusal at auction**, alongside **Exclusive Mining Zones** (in-principle statutory clearances for granting mining lease).

7. FDI POLICY — ROUTES, SECTORAL CAPS & PROHIBITED SECTORS

Cue Words	Notes
What Counts as FDI	Investment through capital instruments by a person resident outside India in an unlisted company — i.e. any investment in an unlisted company is FDI (FDI is done through primary markets). Or in more than 10% of post-paid-up capital of a listed company. Once investment is classified as FDI, if FDI holding comes back to below 10%, it is still classified as FDI.
FDI Regulation	FDI is regulated by the FEMA Act, and also by RBI & DPIIT; FDI rules are made by DPIIT.
FDI Inflows into India, 2018-19	Order: **Singapore > Mauritius > USA > Japan** — Singapore **$14.6 bn** (1), Mauritius **$6.5 bn** (2), USA **$2.8 bn** (3), Japan **$2.7 bn** (4). **Maharashtra received the highest FDI**. *(Older figure — 2018-19 data; retain for the ranking pattern rather than as a current number.)*
100% FDI under Automatic Route — Sectors	**Insurance Intermediaries**; **Coal and mining associated infrastructure**; **Marketplace model of e-commerce** (FDI in e-commerce under MoCI); **Renewable energy projects**; **Food processing industries**; **Development & production of seeds**; **Plantation sector**; **Air transport**; **Railway infrastructure (NOT operations)**. **White Label ATMs** — Government permitted **100% FDI through the automatic route**.
Other Sectoral Caps	**Defence manufacturing — 74% under automatic route**. **Insurance — 74%**. **Pharma**: **100% FDI under automatic route for greenfield**; **74% under automatic route for brownfield**, and thereafter through **government approval**.
FDI Prohibited Sectors	**Lottery**; **Chit Funds & Nidhi companies**; **Trading in Transferable Development Rights (TDR)**; **Real Estate Business**; **Construction of farmhouses, tobacco** etc. **No private investment** in **Atomic energy & Railways** (operations).
FDI in Retail & E-Commerce	**Marketplace Model** (e.g. Amazon) — **100% FDI under automatic route**. **Inventory Model** (e.g. Grofers) — **No FDI permitted**. But **100% FDI** in **all models of retail for food products** sourced from Indian farmers or processed in India.
Chit Funds and Nidhis — Investment Restrictions	Come under **NBFCs**; **no FDI allowed**. **NRIs can invest** in chit funds (**no upper limit**) on a **non-repatriation basis**.

8. INVESTMENT VEHICLES — AIFs, ANGEL INVESTMENT & SOVEREIGN FUNDS

Cue Words	Notes
Alternative Investment Fund (AIF)	Any **privately pooled investment fund** (Indian or foreign sources), under the jurisdiction of **SEBI** — **SEBI (AIF) Regulations, 2012**. Investments **do not happen via traditional modes** of investment such as stocks, bonds, cash, property etc. **Includes**: Venture Capital Funds, Hedge Funds, Private Equity funds, Commodity funds etc. **Excludes**: Mutual Funds, Collective Investment Schemes, Family trusts, ESOPs.
AIF — Three Categories	**Category I** — have **positive spillover effects**; SEBI or GoI can consider some concessions. Generally invested in **startups, social ventures, SMEs** which the government considers socially or economically desirable. E.g. **Venture Capital Funds, Angel Investors**. **Category II** — **no specific concessions** given. E.g. **Private equity, debt funds, real estate funds**. **Category III** — have **potential negative externalities** and **undertake leverage** to a great extent. E.g. **Hedge funds** — unregistered private investment partnerships; **not necessary to register with SEBI**, unregulated.
Angel Investor and Angel Tax	Often among **family and friends**; focused on **helping the business succeed** rather than reaping huge benefit; a **Category I AIF venture capital fund**. **Angel Tax** — levied on angel investments **more than the fair market valuation** of the company — to **check money laundering**. **Exemptions**: startups/companies with **turnover under ₹100 cr** and **less than 10 years old**.
National Investment and Infrastructure Fund (NIIF)	**India's first Sovereign Wealth Fund** (investment pool of foreign currency reserves owned by government). Considered an **AIF under SEBI regulation**; **raises debt to invest in equity of infrastructure finance companies**. **Government owns 49%**. **3 funds** — **Master Fund** (for infrastructure); **Fund of Funds** (housing, green infrastructure — to fund managers with a good record in infra projects); **Strategic Fund** (greenfield & brownfield investments).
Additional GoI Commitment to NIIF (June 2026)	2026 Cabinet approved an **additional ₹30,000 crore** Government of India investment commitment in **NIIF**, taking the Government's **total cumulative commitment to ₹60,000 crore**. 2026 NIIF currently manages capital commitments of **~₹40,000 crore** across its funds and has **returned ~₹12,000 crore** to investors through portfolio exits; **GoI holds a 49% stake**. 2026 The new commitment will fund **NIIF's Infrastructure Fund II** (target corpus **~₹30,000 crore**), succeeding NIIF's **first infrastructure fund** (₹16,000 crore corpus — India's largest domestic infrastructure fund). 2026 Key institutional investors in NIIF include the **Abu Dhabi Investment Authority**, **CPP Investments**, **Temasek**, the **Asian Infrastructure Investment Bank (AIIB)**, the **Asian Development Bank (ADB)**, and the **Japan Bank for International Cooperation (JBIC)**.
Broad-Based Funds	Fund established outside India; no single individual holds more than 49% of shares.

9. INVESTMENT PROMOTION INSTITUTIONS & DISINVESTMENT ROUTES

Cue Words	Notes
Invest India	India's **official agency dedicated to investment promotion and facilitation**; **National Investment Promotion and Facilitation Agency**. **Not-for-profit single-window facilitator** for overseas investors **and** Indian investors aspiring to invest in foreign locations. **Established in 2008 under DPIIT**, MoCommerce & Industry. Shareholding: **Government 49%** (DPIIT 43.5% + 19 states 5.5%); rest divided between **CII, FICCI, NASSCOM** — therefore **Invest India is a private body**.
India Investment Grid	Under DPIIT — single-window platform for investment opportunities in India.
National Startup Advisory Council	Suggests measures to promote innovation in all sectors of the economy; chaired by the Minister of Commerce and Industry.
Minority Stake Disinvestment — Routes	**IPO**; **FPO (Follow-on Public Offering)**; **Offer for Sale**. **CPSE Exchange Traded Fund (ETF)** — government can divest its stake in various PSUs across diverse sectors **through a single offering**. **Cross Holdings** — one listed PSU takes up the government's stake in another listed PSU.
Majority Stake Disinvestment — Routes	**Strategic Sale** — sale of a **substantial portion of government holding + management control**; PSUs identified **jointly by DIPAM & NITI Aayog**; proceeds go into the **National Investment Fund (NIF)**. **Alternative Mechanism** — panel **headed by the Finance Minister** to speed up the strategic disinvestment process. *(Source variant; note the file's Section 3 describes it as an inter-ministerial mechanism — retain both.)* **Privatization** — **entire shareholding divested** to a private entity **+ management control**.
NITI Aayog Criteria for Identifying PSUs	NITI Aayog **identifies PSUs for strategic disinvestment** and has classified PSUs into **high priority and low priority** (disinvestment of the latter) based on — **National Security**; **Sovereign function at arm's length**; **Market imperfections and public purpose**.
ICSID and Investment Dispute Settlement	**International Centre for Settlement of Investment Disputes (ICSID), 1966** — by the **World Bank**, for legal dispute resolution between international investors; **binding decisions**; **India is NOT a member**. **MIGA (Multilateral Investment Guarantee Agency)** — protects against **non-commercial risks only**; **India became a member in 1994**.
PPP Institutions Beyond Infrastructure	**National Skill Development Council (NSDC)** — a **not-for-profit company**, a **PPP under MoSkillDev & Entrepreneurship**; aims to promote skill development by **catalysing the creation of large, quality, for-profit vocational institutions**. **GAVI (Global Alliance for Vaccines and Immunization)** — a **public-private global health partnership** committed to increasing access to immunization in poor countries.