Latest news with #PublicInvestmentFund
Saudi Gazette
6 hours ago
- Business
- Saudi Gazette
India to exempt PIF from foreign investment rules: report
Saudi Gazette report NEW DELHI — India has granted Saudi Arabia's Public Investment Fund (PIF) an exemption from restrictive foreign portfolio investment rules, paving the way for greater Saudi capital flows into Indian markets, according to Reuters. Previously, Indian regulations required pooling of investments from various sovereign entities and capped foreign ownership at 10% in any single listed company — limiting the ability of PIF and its affiliates to invest independently. The new exemption removes these barriers, offering the Saudi sovereign wealth fund more flexibility to deploy capital directly into Indian equity markets. One source explained that under the earlier rules, PIF subsidiaries were unable to make separate investments, restricting the fund's operations in one of the world's fastest-growing major economies. The exemption now allows these subsidiaries to invest individually without breaching regulatory limits. The move follows Indian Prime Minister Narendra Modi's visit to Saudi Arabia in April, where both countries committed to deepening investment cooperation in sectors such as energy, infrastructure, and pharmaceuticals. A bilateral investment treaty is currently under negotiation. Saudi Arabia's PIF, which manages around $925 billion in assets, currently holds investments in India totaling $1.5 billion in Jio Platforms and $1.3 billion in Reliance Retail. India, meanwhile, is keen to attract long-term capital from energy-rich Gulf countries to support its infrastructure development and economic ambitions. In 2024, the two countries established a high-level task force with a goal of mobilizing up to $100 billion in Saudi investment into India. A joint statement released during Modi's visit noted 'significant progress' in resolving tax-related issues and affirmed both nations' commitment to finalizing the investment treaty 'as soon as possible.' Media reports suggest that India is also considering further tax incentives for PIF to support investments in critical sectors such as infrastructure and energy.
India.com
15 hours ago
- Business
- India.com
Masterstroke by Modi govt, India makes big move for this country, Pakistan, China in tension due to...
Masterstroke by Modi govt, India makes big move for this country, Pakistan, China in tension due to... New Delhi: India has given Saudi Arabia's Public Investment Fund (PIF) a special exemption from some foreign investment rules. The decision has been taken by the Indian government with an aim to attract more capital and boost financial ties between the two countries. This will also strengthen relations between New Delhi and Riyadh. The move will also enable the Middle East country to invest more in India. A lot of money from Saudi Arabian companies is invested in Mukesh Ambani's companies. According to the current rule, if a foreign company of any country invests in India, then its investment coming from different parts will be considered as one, with an investment limit of 10 percent. Because of this rule, companies of Saudi Arabia's Public Investment Fund (PIF) were not able to invest much in India. This move by India will give tensions to China and Pakistan as both the countries also want to improve their economic relations with Saudi Arabia. What Will Happen Now? The Indian government has exempted Saudi Arabia's PIF from the current rule. It simply means that different companies of PIF will now be able to make separate investments in the country. This will make it easier for them to invest money in the Indian stock market. India wants Saudi Arabia to invest more in the country. Saudi Arabia has a lot of money to invest and India needs that money for development work. The middle east country also wants to invest in fast-growing countries such as India. Under 'Vision 2030', Saudi wants to remove its economy from dependence on oil. Discussion Between The Two Countries? During Prime Minister Modi's April visit to Saudi Arabia, both nations committed to boosting investment collaborations in energy, infrastructure, and healthcare. Simultaneously, negotiations are underway for a bilateral investment treaty. However, a Reuters source indicates that restrictions on combining investments from various sovereign entities may hinder the Saudi fund and its affiliates from investing autonomously. What Is PIF? The Public Investment Fund (PIF), a major global sovereign wealth fund with approximately USD925 billion in assets, has invested USD1.5 billion in Jio Platforms and USD1.3 billion in Reliance Retail, both Indian companies. This investment aligns with India's aim to attract long-term capital from Gulf nations, particularly given India's significant oil imports, and Saudi Arabia's 'Vision 2030' plan to boost investment in rapidly expanding economies. To achieve these goals, both the countries have formed a high-level task force last year. It aims to expedite Saudi's plan to invest USD 100 billion in India. Tax exemption can be available As per reports, the Indian government is also mulling about giving tax exemption to PIFs. The fund coming from the investments will be used in infrastructure and energy sector.
News18
a day ago
- Business
- News18
India To Exempt Saudi Fund From Foreign Portfolio Investment Rules: Report
Last Updated: Prime Minister Narendra Modi visited the Gulf nation in April, when both the countries agreed to promote investment in areas including energy, infrastructure and pharmaceuticals. India has agreed to exempt Saudi Arabia's sovereign wealth fund from a set of foreign portfolio investment rules to attract capital flows and strengthen financial ties between the two nations, two sources said. The rules, which club investments through various sovereign entities together and cap it at 10% in a single company, have prevented different subsidiaries of the Public Investment Fund from investing more in India, they said. Prime Minister Narendra Modi visited the Gulf nation in April, when both the countries agreed to promote investment in areas including energy, infrastructure and pharmaceuticals. India is also negotiating a bilateral investment treaty with Saudi Arabia. The requirement to club investment from different sovereign entities together limits the ability of the Saudi fund and its subsidiaries to invest independently, the first source said, declining to be identified as they were not authorised to speak to the media. The exemption granted to the fund will allow its various arms to invest separately, enhancing their flexibility in deploying capital into Indian equity markets without breaching regulatory thresholds, he said. The Finance Ministry and the Saudi fund did not respond to requests for comment. The Public Investment Fund is one of the largest sovereign wealth funds globally with assets of about $925 billion under management. Its current exposure in India remains limited to $1.5 billion in Jio Platforms and $1.3 billion in Reliance Retail, according to its website. India, the world's third-largest oil importer, is looking to draw long-term capital from energy-rich Gulf nations, while Saudi Arabia is seeking to expand its investments in fast-growing economies as part of its Vision 2030 diversification strategy. To achieve these goals, both the nations formed a high-level task force in 2024 to expedite Riyadh's plan to invest $100 billion in India. "The progress made by this Task Force in areas such as taxation was also a major breakthrough for greater cooperation in the future," a joint statement said in April. "The two sides affirmed their desire to complete negotiations on the BIT at the earliest." Recent media reports indicated the government is also exploring tax relief measures for the Public Investment Fund to support India's infrastructure and energy sectors. First Published: May 30, 2025, 23:16 IST
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Business Standard
a day ago
- Business
- Business Standard
Govt likely to exempt Saudi fund from foreign portfolio investment rules
India has agreed to exempt Saudi Arabia's sovereign wealth fund from a set of foreign portfolio investment rules to attract capital flows and strengthen financial ties between the two nations, two sources said. The rules, which club investments through various sovereign entities together and cap it at 10 per cent in a single company, have prevented different subsidiaries of the Public Investment Fund from investing more in India, they said. Indian Prime Minister Narendra Modi visited the Gulf nation in April, when both the countries agreed to promote investment in areas including energy, infrastructure and pharmaceuticals. India is also negotiating a bilateral investment treaty with Saudi Arabia. The requirement to club investment from different sovereign entities together limits the ability of the Saudi fund and its subsidiaries to invest independently, the first source said, declining to be identified as they were not authorised to speak to the media. The exemption granted to the fund will allow its various arms to invest separately, enhancing their flexibility in deploying capital into Indian equity markets without breaching regulatory thresholds, he said. The Finance Ministry and the Saudi fund did not respond to requests for comment. The Public Investment Fund is one of the largest sovereign wealth funds globally with assets of about $925 billion under management. Its current exposure in India remains limited to $1.5 billion in Jio Platforms and $1.3 billion in Reliance Retail, according to its website. India, the world's third-largest oil importer, is looking to draw long-term capital from energy-rich Gulf nations, while Saudi Arabia is seeking to expand its investments in fast-growing economies as part of its Vision 2030 diversification strategy. To achieve these goals, both the nations formed a high-level task force in 2024 to expedite Riyadh's plan to invest $100 billion in India. "The progress made by this Task Force in areas such as taxation was also a major breakthrough for greater cooperation in the future," a joint statement said in April. "The two sides affirmed their desire to complete negotiations on the BIT at the earliest." Recent media reports indicated the government is also exploring tax relief measures for the Public Investment Fund to support India's infrastructure and energy sectors.
Time of India
a day ago
- Business
- Time of India
India exempts Saudi Arabia's wealth fund from investment cap rules to boost capital inflows
India has agreed to exempt Saudi Arabia's Public Investment Fund (PIF) from certain foreign portfolio investment (FPI) rules in a move aimed at attracting long-term capital and deepening financial engagement with the Gulf nation, two sources familiar with the matter said. The exemption comes amid ongoing efforts by both countries to strengthen economic ties, following Prime Minister Narendra Modi's visit to Saudi Arabia in April. During the visit, both sides committed to promoting investment in sectors such as energy, infrastructure, and pharmaceuticals. The rules in question limit foreign ownership by clubbing investments from various sovereign entities under a single 10% cap in a listed Indian company. This had constrained the PIF and its subsidiaries from making independent investments in India. 'The requirement to club investment from different sovereign entities together limits the ability of the Saudi fund and its subsidiaries to invest independently,' said one of the sources, who declined to be named, reported Reuters. The exemption granted to the Saudi fund will allow its different arms to invest separately, giving them greater flexibility in deploying capital in Indian equity markets without breaching regulatory thresholds, the source added. The PIF, which manages assets worth approximately $925 billion globally, currently has a limited exposure to Indian markets. According to its website, its India investments include $1.5 billion in Jio Platforms and $1.3 billion in Reliance Retail. India, the world's third-largest oil importer, is seeking long-term capital from energy-rich Gulf nations, while Saudi Arabia is looking to broaden its global footprint through investments in high-growth markets as part of its Vision 2030 economic diversification strategy. To accelerate these goals, a high-level task force was set up in 2024 to fast-track Saudi Arabia's plans to invest $100 billion in India. 'The progress made by this Task Force in areas such as taxation was also a major breakthrough for greater cooperation in the future,' a joint statement issued in April said. 'The two sides affirmed their desire to complete negotiations on the BIT at the earliest.' Recent reports also indicated that the Indian government is exploring additional tax relief measures for the PIF to encourage greater investment in infrastructure and energy sectors. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
