Why India should steer clear of sovereign wealth funds

Abstract

Utilising such investments to stabilise the economy is a bit like offering a military base to another country. The Government of India, according to press reports, is considering approaching sovereign wealth funds (SWFs) to invest in India. This is an interesting idea that needs to be examined closely. In the recent financial crisis, SWFs are known to have played a stabilising role but that has not been their historical image. In fact, the threats posed by the SWFs and their intentions were characterised by the attempted purchase of US ports by a Dubai-based company in 2006 and expansion in Europe by Russia's Gazprom. These attempts alarmed policymakers in advanced countries. Read more at: https://www.business-standard.com/article/opinion/charan-singh-why-india-should-steer-clear-of-sovereign-wealth-funds-113102901202_1.html