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| 13 December, 2017

Abu Dhabi-based fund to invest $2bln in India technology

Around $1.5bln for the fund will be raised from the region, while the remaining $500mln has been secured from a consortium of investors.

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.

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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: tom.arnold.thomsonreuters.com@reuters.net))