Punita Kumar Sinha, Managing Partner, Pacific Paradigm Advisors, says “every company globally is now looking at India as a source of opportunity and growth. They are all finding ways to invest more in India. So there is a lot of strategic interest in India.
That means there will be a lot more investment, capex, and more growth. Indian companies are gearing up for that demand and the good news is that these companies’ balance sheets are not very leveraged.”At a time like this, when we are seeing quite a bit of volatility in the markets despite being confined in a range, how is India looking versus some of the other economies?India continues to be in a sweet spot for a number of reasons. The macro environment is benign.
We are growing rapidly but the most important thing is that every company globally is now looking at India as a source of opportunity and growth. They are all finding ways to invest more in India. So there is a lot of strategic interest in India.
That means there will be a lot more investment, capex, and more growth. Indian companies are gearing up for that demand and the good news is that these companies’ balance sheets are not very leveraged. The consumers are also not very leveraged.
There is ample headroom for Indian companies to invest further in preparation for that demand. Now, there are some global woes out there that the markets have been ignoring. One, obviously the Chinese data is very disappointing.
There is still deflation. So maybe the Chinese government may have to push some more stimulus. But right now, the data is disappointing and that does not bode well for the global economy.
The US debt has been downgraded. The US bond yields have started to rise. Crude oil prices have gone up.
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