India must revive PPPs and reform its bond market to boost economic growth
5 days, 23 hours ago

India must revive PPPs and reform its bond market to boost economic growth

Live Mint  

At 6.4%, India’s likely growth rate for 2024-25 as estimated by the National Statistics Office, would be lower than not just earlier estimates, but even the recently revised estimate of the central bank. Talk of India being the world’s fastest growing large economy brings little cheer to Indians, except at top levels of the pyramid. In short, for India to step up investment, it must create viable projects, forge a new PPP model and free India’s bond market of fetters. India’s debt market is schizophrenic: government securities are regulated by the central bank, while corporate bonds are under Sebi’s watch.

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History of this topic

Prudent policy: India should not let public debt eclipse the fiscal deficit
1 week, 1 day ago

Prudent policy: India should not let public debt eclipse the fiscal deficit

Live Mint  

In a 2020 address to the nation soon after the outbreak of covid, Prime Minister Narendra Modi cited age-old wisdom that advised against losing control of three things: fire, debt and disease. To cushion India’s economy from the pandemic’s shock, though, government spending had to vastly exceed its inflows, taking its fiscal deficit to 9% plus of GDP in 2020-21. …

S&P Foresees Steady 6.5-7 Percent Growth for India Until 2027
2 months ago

S&P Foresees Steady 6.5-7 Percent Growth for India Until 2027

Deccan Chronicle  

New Delhi: S&P Global Ratings on Thursday projected the Indian economy to grow between 6.5-7 per cent annually in the three fiscal years till March 2027 as infrastructure spending and private consumption drive growth momentum. “Good economic growth prospects will continue to support banks' asset quality, while healthy corporate balance sheets, tighter underwriting standards and improved risk management practices will …

India’s ‘sweet spot’ lures bond funds amid global market turmoil
4 months, 3 weeks ago

India’s ‘sweet spot’ lures bond funds amid global market turmoil

Hindustan Times  

Global funds have poured money into India’s debt market for 14 weeks in a second streak of buying this year, evidence of the country’s appeal amid the ructions of worldwide financial markets. “India is in a sweet spot from a macro perspective and also from a monetary policy perspective,” said Jenny Zeng, chief investment officer for Asia Pacific fixed income …

Shedding more light on the debt dilemma
1 year, 5 months ago

Shedding more light on the debt dilemma

The Hindu  

The elevated levels of India’s fiscal deficit and public debt have been a matter of concern for a long time in India. Financial repression The debt-dynamics equation states that when there is no primary deficit, if the growth rate of GDP exceeds the effective interest rate paid on government bonds, the overall debt will decline. When the interest rate on …

Latest headache for Indian firms: Sluggish bond market
4 years, 11 months ago

Latest headache for Indian firms: Sluggish bond market

Live Mint  

India needs a bigger bond market now more than ever, to help get funds to cash-strapped companies cut off from their shadow lenders by a crisis in that sector. Rupee corporate bond issuance seen increasing little in 2020 A stalling in issuance also undercuts attempts by Finance Minister Nirmala Sitharaman and predecessors to expand India’s corporate bond market to better …

Financial system stable despite weakening economic growth; reviving consumption, investment a major challenge: RBI
5 years ago

Financial system stable despite weakening economic growth; reviving consumption, investment a major challenge: RBI

Firstpost  

The PSBs need to build stronger buffers to absorb any disproportionate operational losses, while private lenders need to focus on corporate governance, the RBI said. Mumbai: India’s financial system remains stable even after economic growth plummeted to a six-year low, the Reserve Bank of India said on Friday. “Reviving the twin engines of consumption and investment while being vigilant about …

Opinion | Lighten India’s debt burden to give growth a chance
5 years, 2 months ago

Opinion | Lighten India’s debt burden to give growth a chance

Live Mint  

With India’s economy growing at the slowest pace in six years, many wonder why consumers, companies and even the public sector can’t set it right. For a time, it was forgotten as India’s economy got a welcome boost from falling oil prices, a surge in lending from shadow banks, and a rise in public sector investment. Oil prices stabilized, alarm …

Opinion | Retail investors can add to India’s growth story
5 years, 6 months ago

Opinion | Retail investors can add to India’s growth story

Live Mint  

The future of India lies in the lay investor’s hands, at least partially. Till recently, most of the capital was provided by government spending, so we could build atomic reactors, metros and even behemoths like Air India. And retail investors were encouraged to provide the government with more capital, through post office deposit schemes and Public Provident Fund. But this …

Opinion | Debt market worries for the stock market
6 years, 3 months ago

Opinion | Debt market worries for the stock market

Live Mint  

The financial sector dominated the Indian stock market last week and is likely to remain in focus in the near term. Although the fund house and Dewan Housing Finance executives came out to explain their position, it was not enough to calm the market. Since NBFCs don’t have a sticky deposit base unlike banks, some of the highly leveraged entities …

Sebi pushes firms to bond market to deal with bad loan issue
6 years, 5 months ago

Sebi pushes firms to bond market to deal with bad loan issue

Live Mint  

The Securities and Exchange Board of India is keen to mandate companies that have more than ₹ 100 crore as long-term borrowings compulsorily raise at least 25% of their funding needs by selling bonds. Sebi has joined the Reserve Bank of India in nudging corporates towards the bond market through its latest draft paper. The efficient risk pricing in bonds …

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