FinMin pins hope on global pension funds to buy into India’s infra play

BENGALURU: Global pension funds with $40 trillion of assets under management will now look at India’s infrastructure sector more favourably because of the elimination of dividend distribution tax (DDT), senior officials in the finance ministry said.

Pension funds, insurance funds and sovereign wealth funds invest in the long term and wish to earn through dividends rather than capital gains, the officials said, adding that the elimination of DDT would make it more attractive for such investors to invest in the country’s infrastructure sector.