Sovereign Funds

As the Reserve Bank of India debates on whether India should have a sovereign fund or not,many other countries have sovereign funds.Most of the countries that have sovereign funds have a surplus on the current account unlike India who has a deficit on the fiscal front as well as on the current account.India has foreign exchange reserves of approximately $300 Billion at the moment.

The Finance Ministry is toying with the idea of setting up a SWF with an initial corpus of $10 Billion.

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