‘India sees long-term foreign flows; debt troubles unlikely’
MUMBAI : India is in a bright spot and seeing steady, long-term foreign investment inflows, according to P.D. Singh, chief executive and managing director of corporate banking, India, at JPMorgan Chase Bank. In India, regulators have driven change by disruption and innovation, Singh said in an interview.
While companies are diversifying and raising capital, there are fewer concerns about returning to the over-levered scenario of the past, he added. Edited excerpts: It is not surprising considering India’s multi-decade growth potential. Certainly, we are not isolated from global developments because of our dependence on energy, etc., but India is in a bright spot and a long-term investment story.
We are probably not going to see flashes in the pan. While other countries in Asean are seeing significant initial investments, there is a constant flow of long-term capital that is coming into India. We are also seeing a similar trend in the equities market.
Importantly, our regulators have driven the change through disruption and innovation, and that, to me, is one of our key differentiators. Absolutely. Value creation is a result of the long period of investment in the last cycle.
Indian corporates have generated a good quantum of cash and also raised equity judiciously. These pools of money have been used to deleverage. The deleveraging has improved credit profiles and brought in further efficiency in interest cost savings, even as benchmark rates have increased.
The financial flexibility enables corporates to capture the next phase of opportunities, which may be organic or inorganic. The impact this can have on jumpstarting activity levels cannot be underestimated. I would say it is an indicator of opportunity, and the
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