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September 01, 2015

India should use global turmoil to attract flows

In an interview with CNBC TV 18Vikram Limaye, member of the IDFC Institute Executive Council, says:

 

"Increasingly we are in a networked world... India will certainly face the impact of what happens in China but the positive side is the fact that India has huge opportunity for growth and when you look at things globally and investors globally looking to deploy capital around the world, there are very few economies where the potential for growth is as high as we have in India... the underlying growth in the economy needs to pick up and if you look at the different components of growth, corporate credit growth has been quite slow for some time for the last few quarters for sure and the rural economy also seems to be struggling a bit and therefore consumption demand is the only one that has sustained and retail lending from credit growth perspective is the one that has been driving growth, not corporate or rural. It is important for the investment cycle to come back for corporate credit growth to pick up but it is equally true that government investment and government spending for the foreseeable future needs to be strong because for the private sector to come back from an investment perspective is going to take some time."

 

Watch the full interview here.
 

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