India draws record sovereign wealth fund and domestic fund manager investments

India’s investment appeal is rising sharply. The country’s second‑largest fund manager is betting on banks, power utilities, drugmakers and, cautiously, oil refiners, citing stability and growth prospects amid volatile oil markets. The strategy aims to diversify risk while capitalising on sectors expected to benefit from economic recovery and renewable‑energy pushes.

At the same time, Abu Dhabi’s sovereign wealth funds—including the Abu Dhabi Investment Authority, Mubadala Investment Company and ADQ—have accelerated their India investments. In the first half of 2026 they poured about $1.7 billion into Indian banks, airports, renewable‑energy projects, healthcare, digital platforms and manufacturing, more than double the $700 million invested a year earlier. Officials such as Prime Minister Narendra Modi and UAE President Mohammed bin Zayed Al Nahyan cite India’s long‑term growth, diversified economy and long‑term investment horizon as key drivers.