Canada’s Pension Fund Plans to Invest a Significant Portion of its Assets into India’s Economy by 2025

The Canada Pension Plan Investment Board (CPPIB), which oversees approximately $434.4 billion worth of benefits for retired Canadians, has recently announced it will invest nearly a third of its funds into emerging markets within the next five years with India being the focal destination, as noted by a senior executive.

Currently, approximately 34% of the CPPIB’s total assets are held in the US and Asia, but by 2025 the pension fund anticipates to expand into various emerging markets, with India being the focal point. According to CPPIB’s Asia Pacific head Suyi Kim, the newly-announced investments will range across various asset classes, such as real estate, public and private equities, and infrastructure.

The CPPIB currently has an office in India, with $225 million invested in the India Resurgence Fund, as well as a stake in Kotak Mahindra Bank. Back in December, the pension fund stated it will invest upwards of $600 million in India’s National Investment and Infrastructure Fund, which will comprise of a $150 million commitment towards the NIIF’s Master Fund, in addition to $450 million worth of co-investment rights in prospective opportunities.

Although the CPPIB’s plans are certainly ambitious, India does suffer from significant growth issues, especially in the wake of the coronavirus pandemic. According to S&P Global, the country is expected to face significant debt levels and a growing deficit in 2021. In the rating agency’s recent forecast, India’s debt-to-GDP ratio is expected to rise by more than 17% from the prior year, before reaching a staggering 90.6% of GDP by March 2021. In the meantime, S&P Global reaffirmed the country’s lowest investment grade credit rating at BBB minus.

Although S&P forecasts that India’s GDP level will fall by a record-breaking 9% as a result of the pandemic, a steady recovery is expected to begin in fiscal 2022. The rating agency predicts that GDP levels will recover by up to 10% within the next fiscal year, with additional fiscal stimulus measures expected to alleviate some of the impending financial burdens.


Information for this briefing was found via CPPIB, S&P Global and ceisdata.com. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

When 4% of Global Copper Disappears Overnight | David Gower – Emerita Resources

Mining M&A: Gold X2 Acquires Kesselrun Resources

They Said Oil Was Dead. They Were Wrong. | Michael Judson – Record Resources

Recommended

Steadright Secures Two Additional Exploration Licenses For Flagship Project

First Majestic Posts Record Quarterly Silver Production In Q3

Related News

Hindenburg vs. Adani Group, Explained

In a economic situation marred by recessions and fraudulent schemes left and right, we found...

Tuesday, January 31, 2023, 07:29:00 AM

Russia Has Billions Stuck in Indian Banks

Billions in profits from Russian oil sales have become trapped within Indian banks, delivering a...

Saturday, September 16, 2023, 11:27:00 AM

Tesla Plans to Sell Model 3 in India Beginning in 2021

Despite Tesla’s growing rift with the Chinese government, coupled with rising concerns regarding its gigafactory...

Sunday, January 3, 2021, 03:43:00 PM

IEA Expects India’s Gas Demand To Surge 60% By 2030

India’s natural gas consumption is projected to increase by nearly 60% by 2030, according to...

Sunday, February 16, 2025, 07:43:00 AM

Canada Pension Eyes Investment in Carney’s “Nation-Building”, Drops Net-Zero Commitment

Canada Pension Plan Investment Board chief executive John Graham says Prime Minister Mark Carney’s push...

Thursday, May 22, 2025, 10:02:34 AM