Investment Opportunities across asset classes making India an FDI hotspot

More than 85% of of the company’s funds are invested outside of Canada, with Asia Pacific ranking second after the United States

April 13, 2022

CPP Investment Board (CPPIB) manages more than US$ 500 billion in assets globally, with India accounting for 3.06% of the total

India’s favourable business environment attracts foreign direct investment (FDI)

Contributing for transitioning into greener technology, is CPPIB’s other area of focus

India's internet economy and its enormous potential to boost domestic and household spending, results in the formation of big, lucrative sub-sectors: Company Official

Opportunities for investment spread across asset classes such as toll roads, office blocks, renewable energy, e-commerce, and fintech create a favourable environment to attract FDI, according to the John Graham, CEO of Canada Pension Plan Investment Board (CPPIB), one of the world’s largest wealth management corporations.

CPPIB manages more than US$ 500 billion in assets globally, with India accounting for 3.06% of the total. The firm has been increasing its exposure in emerging economies since 2019. More than 85% of its funds are invested outside of Canada, with Asia Pacific ranking second after the United States.

CPPIB has been investing heavily in digital and tech businesses around the world, particularly in Indian unicorns or soonicorns. During the Covid-19 crisis, technology usage was the highlight, boosting the creation and uptake of services like food delivery and online education. An official from the organization emphasized that India’s internet economy and its enormous potential to boost domestic and household spending is resulting in the formation of lucrative sub-sectors.

All of these aspects provide appealing opportunities for international organizations to contribute a steady flow of foreign direct investment in India.

Graham mentions that the other area of focus for the firm is sustainability and assisting old-economy cement, chemicals, steel, and manufacturing companies to wean away from fossil fuels and make the transition to net-zero.