A Study of “Is Soverign Wealth Fund an Indian Reality”

In the current global scenario government debt is shooting over the top for developed countries like Italy, Spain, Greece, Ireland, US, UK. Sustainability of government is a primary question faced by these countries and ways to overcome the crisis is the second issue to face. The varied exotic instruments are the root cause of this escalating sovereign debt. Countries are trying to overcome this crisis by entering into varied strategies. Creation of a Sovereign Wealth Fund is one of the ways to safeguard a country against the ascending sovereign debt. They have been established for various purposes, including stabilization of fiscal revenues, management of inter-generational savings, and sterilization of the effects of balance of payments inflows on domestic inflation.

This paper is an attempt to learn the existing Sovereign Wealth Funds and analyse the performance of these funds, to study the opportunities and threats of this instrument and finally suggest whether creation of such a fund will actually benefit India in the long run.