DUBAI- Next Orbit Ventures (NOVF) ESDM, a newly established Abu Dhabi-based fund, said on Wednesday it had launched a $2 billion fund to invest in India's semiconductor and electronics industries.
Mumbai-based private equity firm Next Orbit Ventures set-up the fund under the regulation of the Abu Dhabi Global Market financial centre after receiving funding commitments from the Gulf region.
Around $1.5 billion for the fund will be raised from the region, while the remaining $500 million has been secured from a consortium of investors involving both the Indian government and ultra high net worth individuals, NOVF said.
The investments are aimed at creating the required infrastructure to cope with India's fast-growing market for electronic goods and components.
India imported nearly $45 billion worth of electronic goods and components in 2016, according to a study by Ernst & Young and the Indian Electronics & Semiconductor Association.
The Indian government has been trying to boost investments in the semiconductor industry to curb the risk of trade imbalances and enhance cybersecurity.
(Reporting by Tom Arnold; Editing by Mark Potter) ((Tom.Arnold@thomsonreuters.com; +97144536265; Reuters Messaging: firstname.lastname@example.org))