The Indian government has been in talks with government institutions in Abu Dhabi and Dubai about investing in Delhi’s National Investment Fund that will fund new infrastructure projects in India.

Minister of State for Finance, Jayant Sinha, has been in the UAE to meet with investment funds and showcase the opportunities the Indian economy offers over the next decade.

“One reason why I am in Dubai and Abu Dhabi is we have created a National Investment Fund that is going to act like a sovereign wealth fund, that will enable us to put ?1 trillion ($16bn) into new infrastructure,” said Sinha in a speech at the Utkarsh Bharat speaker series in Dubai on 11 April.

Speaking to MEED after his speech, Sinha confirmed that he was in Dubai and Abu Dhabi to present to investors such as Abu Dhabi Investment Authority (ADIA) to attract investment into India.

India has become an increasingly attractive investment opportunity for financiers following the election of Prime Minister Narendra Modi on 26 May 2014 and its expansionary budget, which was launched in February this year. “The recent upgrade by [the US’] Moody’s [Investor Services] shows that India is now moving in the right direction,” said Rajeev Kakar, CEO of UAE-based Dunia Finance, who was also speaking at the event.

Unlike the oil exporting economies of the GCC, India is benefitting from lower energy and commodity prices, and as China’s economy shows signs of cooling, long-term investors are showing interest in the growth opportunities the Indian economy offers.

“If you look at the global economy right now, if you look at where commodity prices are and the fact that the world is awash with capital, if you put these factors together with the leadership we have, and the mandate we have received, we could not have asked for a better opportunity to change India,” said Sinha.

The Indian government is aiming to emulate the success of the Chinese economy over the past decades, with sustainable growth that will double the size of the country’s economy in 10 years.

“Over the next decade we can have non-inflationary sustainable GDP growth of 7-8 per cent a year,” said Sinha. “We have a $2 trillion economy; if we grow at 7-8 per cent a year, we are going to have a $4 trillion-$5 trillion economy. That is what is ahead of us.”

GDP growth will create major opportunities for investors. “What is really interesting for the business community is that the market capitalisation to GDP ratio in India is a typical 1:1, so if we take GDP to $4 trillion-$5 trillion, we will add $3 trillion to the wealth of India,” said Sinha. “That is the most amazing wealth creation opportunity on the planet.”