India is evaluating using part of its foreign exchange reserves to set up a sovereign wealth fund (SWF), Deccan Herald reports. The proposal from the industry ministry has received backing from the government’s chief economic adviser Kaushik Basu.
The proposed SWF would look to finance infrastructure ventures, which requires estimated investments of $1 trillion in the next five years. The Reserve Bank of India, the country’s central bank, has been opposed to setting up a sovereign wealth fund using forex reserves, currently pegged at $320 billion.
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