UPSC Prelims 2017 Q55: Indian Economy – Infrastructure & Industry
With reference to 'National Investment and Infrastructure Fund', which of the following
statements is/are correct?
1. It is an organ of NITI Aayog.
2. It has a corpus of ₹ 4,00,000 crore at present.
Select the correct answer
using the code given below:
- (a) 1 only
- (b) 2 only
- (c) Both 1 and 2
- (d) Neither 1 nor 2
Answer: (d) Neither 1 nor 2
Explanation
National Investment and Infrastructure Fund (NIIF)
Announced in the Union Budget 2015-16.
It is India's first sovereign-backed infrastructure investment fund.
| Statement | Verdict | Fact |
|---|---|---|
| 1. It is an organ of NITI Aayog | Incorrect | It works under the Department of Economic Affairs, Ministry of Finance |
| 2. It has a corpus of Rs 4,00,000 crore at present | Incorrect | The planned corpus is Rs 40,000 crore |
Key facts:
| Feature | Detail |
|---|---|
| Legal form | Category II Alternative Investment Fund, registered with SEBI |
| Government share | 49%; the rest from other investors |
| Funds | Master Fund, Fund of Funds, Strategic Opportunities Fund |
| Governing Council | Chaired by the Finance Minister |
Answer: (d) Neither 1 nor 2.
Why each option is right or wrong
- (a) Incorrect. NIIF is under the Ministry of Finance, not an organ of NITI Aayog.
- (b) Incorrect. The corpus is Rs 40,000 crore, one-tenth of the figure given.
- (c) Incorrect. Both statements are false: wrong parent body and wrong corpus.
- (d) CORRECT. NIIF is under the Finance Ministry and its corpus is Rs 40,000 crore.
Key point
NIIF (2015): under Department of Economic Affairs; corpus Rs 40,000 crore; Government holds 49%; SEBI-registered Category II AIF.
Remember
NIIF = Finance Ministry, Rs 40,000 crore, 49% Government.
Common mistakes
- Linking every new body of 2015 to NITI Aayog.
- Missing the extra zero: Rs 40,000 crore, not Rs 4,00,000 crore.
- Thinking the Government owns NIIF fully; its share is 49%.
Exam tip
Check the zeros in every corpus figure. UPSC often changes a number by a factor of ten.
Sources
- Department of Economic Affairs, Ministry of Finance — National Investment and Infrastructure Fund
- Union Budget 2015-16 — Budget Speech