Since 2014, when Narendra Modi takes over as the Prime Minister, foreign investment in India has increased manifold. Despite inheriting the unstable banking system due to the continued corruption of the UPA, he has been able to earn the trust of investors. When India was becoming a major investment destination for investors, only the Chinese virus corona caused worldwide economic devastation. Foreign investors from many countries started packing their bags and returning. However, within a few months India has once again started stabilizing its market and the financial market here is still one of the major markets for investors to try their luck.
It is true that coronaviruses have crippled a lot of companies across the country, but after PM Modi’s appeal, investment has started coming in from abroad to give relief to such troubled companies. According to The Print report , Apollo Global Management Inc. and Oaktree global giants such as Capital Group have recently made deals with crisis-ridden companies within India or enhanced their teams’ ability to invest in similar companies. At the same time, New York-based Cerbs had appointed a veteran of Apollo and Citigroup to lead and establish an office in India in 2019 itself.
The scale at which money is coming into India’s troubled financial market can be gauged from the fact that according to the estimate of Researcher Venture Intelligence – this year, $ 1.5 billion of funds have already been invested in India in distressed properties. is. This figure is 55% more than the year 2019. This data is only stating deals that have been finalized. This does not include deals that have recently been announced such as Oaktree’s $ 22 billion announcement of loans to Indiabulls Housing Finance Limited in July.
In December last year, a consortium led by Goldman Sachs Group Inc and global investment firm Varde Partners LP agreed to lend $ 65.75 billion ($ 922 million) to the Indian power company outside the country’s insolvency court. One of the biggest deals.
And it is not just troubled companies that have capital flows from foreign firms. TFI has already reported that Indian companies raised about $ 31 billion in equity capital in the first six months of the year 2020. a record of accumulating . Banks were the most active users with deposits of $ 13.68 billion, followed by the energy and power sectors with $ 7.05 billion and consumer products receiving $ 3.41 billion.
More importantly, this record was made at a time when India’s economy shrank by 23.9% in the June-quarter. Despite this, Internet economists continued to criticize the Modi government’s preparedness to deal with the epidemic.
The flow of capital into the market, and an increase in consumption – as automobile sales growth and Diwali festivals in general surge in sales of goods during the season, it shows the economy is really back on track. Even now economists are pushing their pessimistic agenda but nobody is listening to them. Investors are continuously increasing their investment in India with the confidence of PM Modi, helping the crisis-hit companies to get out of the crisis.