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NIIF to make a $700-million first closure of $1 billion Private Markets Fund II

NIIF to make a $700-million first closure of $1 billion Private Markets Fund II

Economic Times3 days ago
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The National Investment and Infrastructure Fund NIIF ), a quasi-sovereign investment manager backed by the Centre, is set to complete a $700-million first closure of its latest Private Markets Fund (PMF II) within the next month, according to sources familiar with the development.This initial close marks a significant increase compared with the debut fund, PMF I, which raised $600 million in 2019.This week, the New Development Bank (NDB), a Shanghai-based multilateral development bank established by the BRICS nations—Brazil, Russia, India, China, and South Africa—committed $100 million to PMF II. The Asian Infrastructure Investment Bank (AIIB), which had backed PMF I, also reaffirmed its support with a $125 million commitment in May.The government will remain the single largest investor in PMF II, contributing 49% of the total capital.ET first reported in April last year about the launch of $1-billion PMF II.The Private Markets Fund is dedicated to supporting India-focused private equity and venture capital funds. With a target size of $1 billion, PMF II aims to invest across key growth sectors, including electric vehicle (EV) infrastructure, waste management, urban and social infrastructure, technology, manufacturing, and their associated supply chains.Mirroring the structure of PMF I, PMF II plans to build a diversified portfolio comprising approximately 15 funds as well as direct investments in companies. About 75% of the fund's capital will be allocated to growth and venture capital funds, with the remaining 25% invested directly into Indian enterprises, added sources.Since its inception, PMF I has deployed $600 million across 60 companies through nine portfolio funds. It has backed notable funds such as Multiples PE (owned by Renuka Ramnath), Lighthouse India, Invascent, Eversource Capital, Somerset Healthcare, Arpwood Partners, Yournest Capital Advisors, HDFC Capital Advisors, and Amicus Capital Partners.Last year, GoI had appointed Sanjiv Aggarwal as Chief Executive Officer & Managing Director. Agarwal, a former Partner at UK's infrastructure fund Actis, replaced Sujoy Bose, first managing director & chief executive officer of NIIF.The Private Markets Fund is headed by managing partner Anand Unnikrishnan, who joined NIIF in 2018. Prior to joining NIIF, Anand was a senior member of Macquarie Infrastructure and Real Assets (MIRA) team in India for about 10 years.When contacted, an NIIF spokesperson declined to comment.Overall, NIIF manages over $4.9 billion in equity commitments across four distinct funds: the Master Fund (infrastructure), Private Markets Fund (fund of funds), Strategic Opportunities Fund (growth equity), and India-Japan Fund.NIIF is also launching its Master Fund II in a couple of months, targeting a commitment of about $4 billion.NIIF's investor base comprises a diverse group of sovereign wealth funds, pension funds, multilateral development banks, and government counterparts. Prominent backers include the Abu Dhabi Investment Authority (ADIA), Singapore's Temasek, Australian Super, Ontario Teachers' Pension Plan, Canada Pension Plan Investment Board (CPPIB), Asian Infrastructure Investment Bank (AIIB), Asian Development Bank (ADB), New Development Bank (NDB), and the Japan Bank for International Cooperation (JBIC).
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From the margins to the centre
From the margins to the centre

The Hindu

time2 hours ago

  • The Hindu

From the margins to the centre

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Institutional voice BRICS began as an economic acronym coined by Goldman Sachs economist Jim O'Neill in 2001. It has now evolved into a substantial intergovernmental organisation comprising 35% of the global economy and almost half of the world's population — surpassing the G7's 30% economic share as of 2024. The bloc's primary objectives centre on fostering economic, political, and social cooperation among members while increasing their collective influence in international governance. This includes advocating for greater representation in global bodies, coordinating economic policy, and reducing reliance on the U.S. dollar. Initiatives such as the New Development Bank (NDB) and the Contingent Reserve Arrangement (CRA) were designed to offer alternatives to Western-dominated financial institutions such as the World Bank and the International Monetary Fund. Also Read | G7 summit: Will highlight priorities of Global South in G-7, says PM Modi The Rio summit demonstrated both the potential and limitations of this approach. The declaration's strong language on Gaza and Iran reflected genuine consensus on critical geopolitical issues as opposed to the West's view, while India's successful inclusion of condemnation of the Pahalgam terror attack showcased the bloc's capacity to address diverse security concerns. The summit also endorsed expanded roles for India and Brazil in the UN Security Council, advancing a long-standing demand for greater Global South representation. Significantly, the summit introduced a new 'partner countries' category, extending associate status to nations including Belarus, Bolivia, Cuba, Kazakhstan, Malaysia, Thailand, Uganda, and Uzbekistan. This institutional innovation suggests BRICS is evolving beyond its original membership structure to accommodate broader Global South participation. Priorities and realities The Global South's diversity becomes particularly apparent when examining BRICS members' different regional contexts and priorities. Brazil's focus on environmental issues and sustainable development reflects its role as a guardian of the Amazon rainforest, while also serving its agribusiness interests. India's emphasis on technology and services reflects its emergence as a global IT powerhouse, even as it maintains significant agricultural and manufacturing sectors. China's Belt and Road Initiative represents perhaps the most ambitious attempt at South-South cooperation, yet it has also generated concerns about debt dependency among recipient countries. Russia's inclusion in BRICS, despite its geographical location largely in the Global North, reflects how the grouping wants to transcend simple geographical boundaries for shared interests in challenging Western hegemony. Intra-BRICS trade has grown at a faster pace than that of G7 countries, demonstrating tangible shifts in global economic activity. Trade between Brazil and China increased fiftyfold in 20 years, and China-India trade rose 28 times in the same period. The NDB has begun providing alternative funding for sustainable development and infrastructure projects, addressing perceived gaps left by traditional financial institutions. Yet, the path to challenging Western economic dominance faces significant obstacles. The U.S. dollar remains entrenched as the world's principal reserve currency, used in the vast majority of global trade transactions. While BRICS advocates for lesser dependence on the dollar, creating a workable alternative currency system faces enormous technical and political hurdles. Internal Contradictions A critical examination of BRICS reveals inherent contradictions that mirror broader challenges in South-South cooperation. While the rhetoric emphasises solidarity and mutual benefit, the pursuit of national interests by individual members can overshadow collective goals. For example, China's domination within the grouping has resulted in lopsided economic engagement with other developing nations, leading to what some critics have termed 'near-colonial patterns of trade', where raw materials are exported to China in exchange for manufacturing goods. Brazil's advocacy for fairer global trading systems, while simultaneously pursuing the interests of its competitive export-oriented agribusiness sector, exemplifies how national economic interests can complicate collective solidarity. Russia's recent actions in Ukraine negate the idea of South-South cooperation as a legacy of former colonised nations. Besides, Western powers have not remained passive observers of BRICS' growth. Donald Trump, responding to the bloc's criticism of unilateral tariffs and military strikes on Iran, threatened that any country 'aligning itself with' what he termed 'the Anti-American policies of BRICS' would face an additional 10% tariff. This marked an escalation from his earlier threats of 100% tariffs if BRICS countries attempted to replace the U.S. dollar as a reserve currency. Moreover, Western institutions have shown capacity to adapt and co-opt rising powers. The emergence of the G20 can be seen as a response designed to give emerging economies a seat at the table, even if decision-making remains largely influenced by dominant Western powers. Beyond National Interests: A People-Centered Vision As India prepares to assume BRICS leadership next year with its theme of 'Building Resilience and Innovation for Cooperation and Sustainability', the bloc stands at a crossroads. As the world's largest democracy and a major economy with complex relationships with both China and the U.S., India may be uniquely positioned to bridge internal divisions within BRICS. However, ongoing border tensions with China and India's growing strategic partnership with the U.S. through initiatives such as the Quad complicate its role as a unifying force. BRICS undoubtedly represents the most viable institutional expression of Global South aspirations, offering developing nations unprecedented collective economic leverage and political voice in global affairs. However, its current trajectory risks becoming merely another arena for great power competition rather than genuine transformation. The bloc's ultimate promise lies not in replacing Western hegemony with a new form of elite-driven multipolarity, but in evolving into a platform that prioritises the developmental needs and democratic aspirations of the Global South's peoples.

Why is Trump taking aim at BRICS?
Why is Trump taking aim at BRICS?

The Hindu

time3 hours ago

  • The Hindu

Why is Trump taking aim at BRICS?

The story so far: U.S. President Donald Trump's threat to impose 10% tariffs on members of the BRICS grouping that held a summit in Rio de Janeiro this week is the latest in a series of similar threats. Why is BRICS in Mr. Trump's cross-hairs? Even before he was sworn in as U.S. President for the second time, Donald Trump had made it clear that he saw the BRICS grouping as 'anti-American' and a threat to the dollar that he needed to neutralise. On November 30 last year, Mr. Trump said the U.S. would require BRICS members to commit that they would not create a new BRICS common currency, 'nor back any other currency to replace the mighty U.S. dollar', threatening 100% tariffs on them. It's a threat he has repeated several times since. Mr. Trump's irritation appears to stem from BRICS declarations in South Africa in 2023 and Russia in 2024, where members that now also include Egypt, Ethiopia, Indonesia, Iran and the UAE, discussed a BRICS Cross-Border Payments Initiative that aims to facilitate trade and investment within BRICS countries using local currencies and other mechanisms. The initiative built momentum due to the problems Western sanctions on Russia have meant for trading partners in the Global South. What has the U.S. threatened to do? Last Sunday (July 6, 2025), just as BRICS leaders gathered in Rio for the 17th BRICS summit, Mr. Trump said in a social media post that any country aligning with BRICS would face a 10% added tariff. The penalty was 'just for that one thing' of being a member, Mr. Trump said later. It is unclear why the tariff rate was dropped to a tenth from the original threat of 100%, and even whether Mr. Trump will go through with the BRICS tariffs along with other reciprocal tariffs planned for August 1. But there seems little doubt that Mr. Trump wants BRICS de-fanged. 'You can tell the (U.S.) President is (upset) every time he looks at the BRICS de-dollarisation effort…(and) Rio didn't help,' said Steve Bannon, Trump's former White House chief strategist, according to Politico magazine. Editorial | Building resilience: On the 17th Summit of BRICS emerging economies In addition, the Trump administration has slapped 50% tariffs on Brazil after accusing President Lula da Silva of a 'witch-hunt' against former Brazilian President Jair Bolsonaro, who faces charges of attempted coup. It has also imposed 30% tariffs on South Africa after accusing it of unequal trade, as well as expressing concerns over the treatment of Afrikaners (White South Africans). Republican Senators close to Mr. Trump also plan to bring a bill called the Sanctioning Russia Act of 2025 that seeks to place 500% tariffs on imports of oil and sanctioned Russian products, which would hurt Russia, as well as India and China, its two biggest importers. Are Mr. Trump's concerns valid? Mr. Trump's concerns about de-dollarisation have been denied by practically every BRICS member. The South African Ministry of Foreign Affairs issued a detailed statement explaining why the BRICS attempt to use national currencies within the grouping is not the same as replacing the dollar as the global standard. While anti-U.S. rhetoric of some BRICS leaders has been harsh, the wording of the BRICS Rio declaration 2025 issued this week does not directly challenge the U.S. or the dollar. In the operative Paragraph 50, the leaders said they resolved to task ministers of finance and central bank governors 'to continue the discussion on the BRICS Cross-Border Payments Initiative and acknowledge the progress made by the BRICS Payment Task Force (BPTF) in identifying possible pathways to support the continuation of discussions on the potential for greater interoperability of BRICS payment systems.' Paragraph 13 expressed 'serious concerns' over the rise of unilateral tariff and non-tariff measures but didn't name the U.S. Where does India stand? The Modi government, hopeful of clinching a Free Trade Agreement with the U.S., has strenuously objected to Mr. Trump's categorisation of the BRICS as 'anti-American'. Also read: India will give a 'new form' to BRICS grouping in 2026: PM Modi In a parliamentary response on December 2, 2024, the MoS (Finance) Pankaj Chaudhury made it clear that the U.S. allegations referred to a report prepared by Russia during its chairmanship of BRICS, where it had spoken of 'possible alternatives relating to cross-border payments' and 'leveraging existing technology to find an alternative currency'. He added that the report was only 'taken note of' by other BRICS members, not adopted. In March 2025, External Affairs Minister S. Jaishankar was more categorical, saying there is no Indian policy to replace the dollar. He conceded, however, that BRICS members had differences, and there was no unified position of the grouping on the issue.

Rising South: An order rebalanced
Rising South: An order rebalanced

Deccan Herald

time4 hours ago

  • Deccan Herald

Rising South: An order rebalanced

US President Donald Trump has, in his inimitable style, once again taken to social media to issue a threat to the BRICS countries huddled together to devise strategies against the US tariff attacks. 'Any country aligning with the anti-American policies of BRICS will be charged an ADDITIONAL 10 per cent tariff,' he said, hours after the BRICS finance ministers issued a statement that criticised the tariffs, calling them a threat to the global virtually to the BRICS gathering, Russian President Putin reiterated his suggestion of greater financial independence from the US dollar in international trade settlements. Trump is understandably annoyed at the revival of this narrative of criticising Trump's use of tariffs as a coercive policy to force countries to enter bilateral trade deals that favour the US, the BRICS summit proposed a series of reforms in the International Monetary Fund (IMF) and its currency valuation methods. According to the BRICS economic advocacy group, in the current economic uncertainty, the IMF needs to embrace urgent reforms in the quota system to increase the representation and voting power of developing countries, as the present system promotes dominance of advanced economies. The BRICS nations are also calling for an end to the 'gentlemen's agreement' which has historically favoured European countries in the IMF's leadership financial institutions, especially the two Bretton Woods institutions – the IMF and the World Bank (WB) – did play a significant role in the international financial architecture for some years. But they could not prevent the financial crisis nor bail the developed economies out of the crisis, much of which was their own creation. It has also been noted that their working and decision-making process continued to be greatly influenced by the developed 'North' and less relevant to the developing or underdeveloped 'South'. The last two or three decades have seen the global growth engine shift from the North to the South, which now houses three of the world's largest economies. Meanwhile, groupings such as BIMSTEC, BRICS, ASEAN, and SCO have added tremendous muscle to the emerging South-South countries add up to represent about 49% of the world's population, 39% of the global GDP, and 23% of international trade. In a changing geopolitical and geo-economic setting, when the US under Trump's administration is looking to withdraw from global institutions and looking more inwards in its quest for Making America Great Again (MAGA), the post-World War II economic institutions cannot expect to be relevant and succeed in their original objectives by remaining within a seven decades-old organisational structure. They must either reinvent themselves or face the possibility of paling into BRICS financial institutions and efforts under the South-South Cooperation (SSC) are assured signs of a collective leadership that is aligned with a multilateral world order – these are realities of the present era. The rise of the South, the emerging economies, and India's leadership role in SSC promise an alternative to archaic perceptions that are far removed from ground realities, and to the North and its tired leadership. Blocking the progress of BRICS will serve no real purpose for America or the attempts to create roadblocks for BRICS are born out of apprehensions of a challenge to the America-led world order, which is creaking under its own weight of contradictions. The independent non-dollar trade settlement system, which the BRICS is considering, may not be a reality soon, but it is born out of necessity, from the dollar's failure to meet the challenges and needs of the present era. The bilateral and multilateral economic, security, and strategic arrangements under the BRICS agenda need not necessarily hurt the interests of the US or any other grouping unless there is an established clash of interests, which in a highly globalised world would be detrimental for everyone play an important role in understanding the geopolitical and geo-economic dynamics of any given time. The decisions, economic or otherwise, the interpretations of meetings and events, and policy formulations made on flawed perceptions will lead to detrimental results. America and the rest of the Western world have to learn from past errors of judgement and look at the emerging institutions of the South, such as BRICS, from a new perspective. The shift is real – looking away cannot alter that reality.

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