The UK government's development finance institution, British International Investment (BII), plans to allocate approximately $1 billion to climate-related projects in India by 2026. This move is driven by India's expanding renewable energy capacity.
In the previous year, BII invested over $300 million in climate finance sectors such as renewable energy, electric mobility, and sustainable agriculture in India. Their current portfolio in India is valued at $2.2 billion, encompassing investments in over 290 businesses. Notably, BII also committed to invest up to $250 million in automaker Mahindra and Mahindra Ltd's new electric vehicle unit last year.
The company manages approximately £8.2 billion in assets, invested across roughly 1,500 businesses in emerging economies spanning 65 countries. While discussing the overall portfolio performance, the company reported a 5% annual return over a rolling 7-year period but did not provide specific details about returns on Indian investments.
Indian economy is experiencing a 'good phase' in contrast to BII's investments in certain African nations. In these African countries, factors such as high debt, inflation, and currency depreciation had adversely affected investment returns.
BII aims to invest in budding entrepreneurs and companies facing challenges in securing funding for their emission-reduction projects.