Foreign investors have enough reason to be bullish on India: Jayant Sinha
In an interview to ET Now, Jayant Sinha, MoS, Civil Aviation, explains why foreign investors are excited about India and why it is wrong to question the credibility of the latest GDP numbers. Excerpts:
ET Now: How would you describe the current investment scenario in India?
Jayant Sinha: Alternative assets in India are doing extraordinarily well. As you can see, there has been tremendous global interest in stepping up investment in India.
We have seen, for example, the Canadian funds build up their positions in India. Foreign investors tell us that they like what they see in India particularly post demonetisation, which of course has been a tremendous success.
ET Now: So you are getting a thumbs-up from foreign investors on demonetisation?
Jayant Sinha: Very much so. Foreign investors are noticing that cash-to-GDP ratio is coming down while tax-to-GDP is going up. As a result, they now believe that a very powerful structural reform is taking root in India.
As you have seen, the GST Council has largely approved the draft of the legislation that has to be passed. That means the very crucial structural reform is finally coming through.
So in all, foreign investors are very excited about India — both on the public market side and on the private market side.
ET Now: The Opposition says your latest GDP figures are not credible enough. In that light, do foreign investors still consider India to be the fastest growing economy?
Jayant Sinha: Look, everybody is entitled to their opinion. But facts are facts. And the facts are clear. Facts tell us that what our government has been doing with the economy — both structural reforms, and public and private investment — has led to very strong growth.
With the global economy now beginning to recover, global capital markets are doing well and there is tremendous hope for stronger economic growth in America. These trends seem to have been well established now. This will mean excellent growth for India and of course, much higher profits for businesses.
ET Now: Janet Yellen seems to have indicated that a rate hike in coming mid-March. Could that go against us?
Jayant Sinha: It depends on what kind of worldview you have. Is your glass half empty or half full? As for me, my glass is half full. I have a glass half full view of the world.
If the Fed is raising rates, it's because US economic growth is robust and the country is close to full employment. That is going to be very positive for the global economy. It is very positive for India as well, because we are a very important trading partner of the US. So I see this as a very good story.
ET Now: NPAs are one of the big black holes for the economy. Could it continue to be a huge problem?
Jayant Sinha: We are working on all sorts of mechanisms to be able to address the NPA issue.
ET Now: How would you describe the current investment scenario in India?
Jayant Sinha: Alternative assets in India are doing extraordinarily well. As you can see, there has been tremendous global interest in stepping up investment in India.
We have seen, for example, the Canadian funds build up their positions in India. Foreign investors tell us that they like what they see in India particularly post demonetisation, which of course has been a tremendous success.
ET Now: So you are getting a thumbs-up from foreign investors on demonetisation?
Jayant Sinha: Very much so. Foreign investors are noticing that cash-to-GDP ratio is coming down while tax-to-GDP is going up. As a result, they now believe that a very powerful structural reform is taking root in India.
As you have seen, the GST Council has largely approved the draft of the legislation that has to be passed. That means the very crucial structural reform is finally coming through.
So in all, foreign investors are very excited about India — both on the public market side and on the private market side.
ET Now: The Opposition says your latest GDP figures are not credible enough. In that light, do foreign investors still consider India to be the fastest growing economy?
Jayant Sinha: Look, everybody is entitled to their opinion. But facts are facts. And the facts are clear. Facts tell us that what our government has been doing with the economy — both structural reforms, and public and private investment — has led to very strong growth.
With the global economy now beginning to recover, global capital markets are doing well and there is tremendous hope for stronger economic growth in America. These trends seem to have been well established now. This will mean excellent growth for India and of course, much higher profits for businesses.
ET Now: Janet Yellen seems to have indicated that a rate hike in coming mid-March. Could that go against us?
Jayant Sinha: It depends on what kind of worldview you have. Is your glass half empty or half full? As for me, my glass is half full. I have a glass half full view of the world.
If the Fed is raising rates, it's because US economic growth is robust and the country is close to full employment. That is going to be very positive for the global economy. It is very positive for India as well, because we are a very important trading partner of the US. So I see this as a very good story.
ET Now: NPAs are one of the big black holes for the economy. Could it continue to be a huge problem?
Jayant Sinha: We are working on all sorts of mechanisms to be able to address the NPA issue.
