3i set to invest $1.5bn in India

Private equity giant 3i today said it would launch a $1.5 billion (£960 million) infrastructure fund for India next year as it looks to boost its investments in sectors such as power, ports and roads.

"On the infrastructure side, India is the only country in the world where we have a dedicated country fund because the sheer growth opportunity here is more than anywhere else," chief executive Michael Queen said.

"For an organisation like us, or other infrastructure investors, it looks like a very, very attractive market."

3i had launched in 2008 a $1.2 billion fund for investment in infrastructure companies in India, and Queen said the private equity group has already invested about 80% of that fund.