Eighteen months into Narendra Modi’s government, things are looking up for India. Growth is quickening, inflation is under control, and reforms are coming through. Harnessing that momentum, however, remains a constant challenge, and India’s prime minister will need to work hard if he is to come close to meeting his grand ambitions.
One and a half years since taking power, Narendra Modi’s superstar status on the international stage contrasts with mounting frustration closer to home.
A bumper year for equity offerings shows investors are still keen to add Indian exposure, despite troubles elsewhere in Asia.
India is allowing domestic firms to raise rupee-denominated debt abroad for the first time, but companies may need to improve their balance sheets before they can take full advantage.
Infrastructure finance company IDFC has established India’s biggest new bank in 10 years after winning a coveted banking licence. Rajiv Lall, CEO of IDFC Bank, outlines the opportunities ahead for the new lender.
Such is the shortage of capital at Indian banks that resorting to the public markets may not enough to plug the gap and more radical solutions may be necessary.
The Indian government is backing a new bankruptcy code to reform its inefficient banking system and improve productivity in the corporate sector.
Bringing more project financing into the capital markets will be key to overcoming constraints in the banking sector and delivering Modi’s ambitious infrastructure targets.
Indian borrowers are looking at issuance of asset-backed bonds as a means to cheapen their funding sources and broaden their investor bases.