Funding economic sovereignty

After having tried unsuccessfully for many years to get the Union ministry of finance and the Reserve Bank of India (RBI) to agree on using a part of foreign exchange reserves to finance infrastructure, the Planning Commission has now mooted the idea of a sovereign wealth fund (SWF). The idea is not new, either here or in global financial markets. But it’s unique to the extent that the SWF is proposed to be set up by a country that not only has a sizeable current account deficit but is also resources poor and has a huge and growing resources deficit.

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