About:

• SDG Finance Facility platform at UNDP in partnership with Invest India, the investment promotion arm of the Government of India has developed this Map.
• The map will help public and private sector stake-holders direct capital towards IOAs, and White Spaces (Areas of Potential) that can contribute to the sustainable development needs of the country.
• The map has identified 18 Investment Opportunities Areas (IOAs) and 8 White Spaces across 6 Priority Sectors including Education, Healthcare, Agriculture and Allied Services, Financial Services, Renewable Energy and Alternatives, and Sustainable Environment.

Key Highlights of the SDG Investor Map

• Of the 18 IOAs identified, 10 are already mature investable areas that have seen robust Private Equity and Venture Capital activity, and feature companies that have been able to unlock scale and demonstrate profitability.
• The remaining eight IOAs are emerging opportunities, which have seen traction from early-stage investors.
• The map has also identified eight White Spaces, which have seen investor interest and have the potential to grow into IOAs within a 5-6-year horizon.
• However, these require further policy support and private sector participation to mature into commercially attractive IOAs.
• Nearly 50% of the shortlisted IOAs have historical investments that have yielded IRRs in excess of 20%.
• 84% of the IOAs have investment time frames ranging from the short term (less than 5 years) to the medium-term (between 5- 15 years).

Significance: 

• India occupies a key role in determining the success of the SDGs, globally. 
• Data-backed research and insights serve as useful blueprints to understand how best the SDG financing gap can be narrowed in India.
• With the emergence of the COVID-19 pandemic, the financing gap for the SDGs in India has only widened further.
• Investing in the SDGs at this point is crucial to ‘Building Back Better’ and making the economy and our societies more resilient and sustainable.

Why in News?

UNDP and Invest India have launched the SDG Investor Map for India, laying out 18 Investment Opportunities Areas (IOAs) in six critical SDG enabling sectors, that can help India push the needle forward on Sustainable Development.

Reference:

1. https://pib.gov.in/PressReleasePage.aspx?PRID=1675985