This year has witnessed a rush of Canadian long-term investors into India. Investors such as Fairfax, Caisse de dépôt et placement du Québec (CDPQ) and Brookfield have already invested $6.5 billion in 2016.
The largest investment of these is Brookfield’s $1.6 billion investment in Reliance Infratel Ltd. The other sectors the Canadian investors have favoured include banking, financial services and insurance (Edelweiss ARC, SBI ARC), infrastructure (Resurgent Power, TVS Logistics, Bengaluru airport) and manufacturing (Sanmar Group, Privi Organics).
India’s relative attractiveness as an investment destination, along with the requirement for pension funds to service their long-term liabilities, seems to be the driving factor behind this trend.
In a speech titled India: Bright in a World of Grey, Michael Sabia, chief executive officer, CDPQ, said in Mumbai last month: “India needs investors who are in it for the long haul. Investors who bring the mindset of a business owner. Investors who focus on fundamental value and deep economic trends. In other words, India needs builders.”