2010 SWF Outlook: Will India Join The Ranks Of The SWFs?

India is ranked sixth in the world in terms of FX reserves held by regions of the world, accounting for 3% of global reserves, so why is it the only BRIC without a sovereign wealth fund (SWF)? With US$254bn in reserves and no SWF, India does seem to single itself out, especially from neighbouring China, which has one fourth of total reserves and sovereign wealth funds amounting to US$723.3bn. In contrast, most of India's reserves are invested in US Treasury bills, whose returns are relatively low, as they are low-risk. CFW believes that this strategy is unlikely to prevail much

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