Modi is scheduled to make his first public announcement of his new government on Tuesday, when he will say the country will be taking control of its sovereign wealth funds, a move that would be the largest single investment move India has made in recent times.
The move will mark the largest sovereign wealth investment by any country in the world.
India has been investing in its sovereign funds since 2009, when Prime Minister Narendra Modi took office.
He is the first Indian prime minister to take control of a sovereign wealth, a government-run fund that has been the source of India’s economic growth and political stability since independence.
Modi, who has been a staunch advocate of India-China relations, has pledged to set aside at least 20 percent of India the proceeds of a foreign-investment that could help bolster its economy and bolster the government’s efforts to revive stalled industrial growth.
He has made the announcement in the run-up to his inauguration as prime minister, at a time when investors are worried about the slowing pace of economic growth in India and fear the country is at risk of a financial meltdown.
Indias sovereign wealth portfolio includes state-run investment funds, which are used for infrastructure projects and infrastructure and other development projects.
The portfolios include a $15 billion fund for infrastructure development, a $10 billion fund to invest in energy projects and $5 billion for health, education and infrastructure.
While the fund has grown significantly in size since Modi took power in May 2014, it still comprises only around 2 percent of the countrys total assets.