The fund has come about despite disagreement between India and the UK over student immigration and intra-company transfers. “The Fund will invest in mid to large-sized companies in the green infrastructure space in India primarily in renewable energy, energy distribution/transmission, clean transportation, water treatment, waste management,” said an official of the Indian Ministry of Finance in a statement.
The Narendra Modi government has set up the National Investment and Infrastructure Fund (NIIF) to catalyze capital from international and domestic investors into infrastructure and allied sectors in India. The Modi government has committed $3 billion to be managed by NIIF Limited through one or more funds to be set up in partnership with non-government investors.
India conveyed to the UK several times that education will define future bilateral engagement. Last November, India had asked British Prime Minister Theresa May to expedite free trade agreement process to compensate possible loss due to Brexit and had said there should not be selective free trade agreement as the UK is trying to do so on student visas.
The bilateral trade between India and the UK stands at $14 billion and is declining.