To generate higher returns for American retirees, the US government is working with the Indian government to encourage pension funds in the US to invest more in India, across asset classes including equities, debt, real assets and the energy sector.
A US Mission India has been set up to coordinate roadshows by top-level executives of US public pension funds from its 50 States, as well as non-profit groups, who collectively represent assets of $1.8 trillion. “We’re bringing these high-level executives out to meet with top Indian political and business leaders to learn more about the Indian investment market…,” US Consul General in Mumbai, Mike Hankey, told the media in a virtual interaction.
The roadshows start next Monday and will continue until Friday. Initially, representatives of five different funds will be visiting India.
The US Mission India comprises the embassy, all the consulates, the US Department of the Treasury, India’s Ministry of Finance and the National Investment and Infrastructure Fund. The effort is to promote long-term US institutional investment into India.
“It is going to deliver good returns for hard-working Americans, who are putting their investments into various global markets,” said Hankey. “At the same time, it’s going to enable and accelerate what India is doing as it grows, and as its stature in the world grows.”
India’s growth story
He pointed out that India’s growth story was impressive, with its rapid scale-up in infrastructure, investment in manufacturing and its bid to be the third largest economy in the near future. Pensions funds from the US had already invested $50 billion in India, through various channels while the US government through the Development Finance Corporation is investing $4 billion. “We are continuing to put investments into key sectors, healthcare, pharmaceuticals, agriculture, women owned businesses, climate and clean energy transitions,” he said, adding that the pension funds of the individual states in the US will be taking their own investment decisions.
“We are really interested in boosting the amount of US investments into India.”
The US pension funds will be visiting key cities such as Delhi, Mumbai and Bengaluru and talking to government officials, regulators, market intermediaries and familiarising themselves with the investment opportunities in India. They will also be meeting with a range of potential investment targets and sector experts.
“One of the things that we’re doing is making sure that we introduce the leadership of these funds to the range of opportunities that they have in India, that they understand where there are targets for investment in infrastructure that can enable India ‘s growth, and that can enable clean energy transition,” Hankey added.