The Union Cabinet, under the leadership of Prime Minister Narendra Modi, has approved an additional investment by the Government of India of ₹30,000 crore in the National Investment and Infrastructure Fund (NIIF) to be used for its upcoming funds, the government announced on Monday (June 29, 2026). The decision itself was taken last week, it said.

This would take the government’s total commitment in NIIF to ₹60,000 crore.

The NIIF is India’s sovereign anchored fund, in which the government of India is a 49% shareholder. It currently manages capital commitments of about ₹40,000 crore across its funds and investment strategies, the government said. 

“We are grateful for this allocation of ₹30,000 crore, which is a strong reaffirmation of Government support to NIIF and reinforces the catalytic capital model that has defined NIIF since inception,” Sanjiv Aggarwal, Managing Director & CEO of NIIF said.

According to a release by NIIF, this additional allocation from the government will help NIIF to raise larger funds, attract investors across geographies, and deepen its presence in key sectors of the economy.

The government said that this additional investment of ₹30,000 crore will be used to set up NIIF’s second infrastructure focussed fund, the successor to its first flagship fund with this mandate. 

“NIIF Infrastructure Fund II is proposed to have a target corpus of close to ₹30,000 crore and is expected to undertake investments across transportation, energy, digital infrastructure, and emerging areas such as urban infrastructure and e-mobility,” the government release said. 

It added that the allocation will also support NIIF’s new fund strategies and upcoming bilateral and strategic funds.  

“Over the past decade, GoI’s anchor commitment has enabled us to build a very strong institutional investor base, spanning leading sovereign wealth funds, pension funds, multilateral and bilateral institutions, and domestic financial institutions,” Mr. Aggarwal added.