India Weight in Norway Pension Fund Falls 40 bps to 2.1% as China and Taiwan Gain

India’s allocation in the portfolio of Norway’s sovereign wealth fund has declined following weaker performance compared with other emerging markets during 2025. 

India Weight Reduced in Global Portfolio 

Norges Bank, which manages the world’s largest sovereign wealth fund with assets exceeding $2 trillion, reduced India’s weight in its investment portfolio by 40 basis points to 2.1% as of December 31, 2025, according to its latest annual filings. 

The change reflects the relative underperformance of Indian equities during the year. While the overall fund delivered a 15% return in 2025, the India segment of the portfolio posted a negative return of 1.4%, making it the only market in the fund’s holdings to record a decline. 

China and Taiwan Gain Higher Allocation 

The reduction in India’s allocation coincided with higher exposure to other Asian markets. China’s weight increased by 30 basis points to 3.6%, while Taiwan’s allocation rose by 20 basis points to 2.7%, pushing it ahead of India in the fund’s country ranking. 

Taiwan also emerged as the best-performing market within the fund’s portfolio with 37% dollar returns, followed by Canada with 33% returns. 

Investment Strategy and Portfolio Changes 

The sovereign fund follows a market value-based indexing approach, where the weight of individual markets changes depending on their performance. Markets that outperform see their weight rise, while weaker performers lose allocation. 

Responding to queries, a spokesperson for Norges Bank Investment Management said, “The fund is invested globally according to a reference index set by the Norwegian Ministry of Finance, which uses the FTSE Global All Cap index as a starting point. We do not comment on the outlook for specific markets.” 

The fund occasionally makes manual adjustments as well. For instance, Adani Green Energy was removed from its portfolio last month following an ongoing SEC investigation. 

Read More: India Ranks as World’s 2nd Largest Arms Importer in 2021–25 with 8.2% Share: SIPRI! 

Conclusion 

Despite the recent reduction, India remains a significant investment destination for the fund, though its portfolio value declined from $36 billion during 2021–2024 to $31.4 billion as of December 31, 2025 as global investors reassessed allocations amid shifting market performance. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.  

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