Waiting for investors to look for relief measures from the government to boost the economy
New delhi date. August 14, 2019, Tuesday
Investors are awaiting relief measures from the Indian government, fearing that the country's financial markets will rise due to uncertain economic prospects and increase defaults.
The government plans to announce measures to stimulate the economy and may announce some steps this week for the country's auto, residential and NBFCs and small business houses.
Credit profiles of the country's companies declined to a six-month low in July, according to a rating agency's index, which monitors up to seven local companies.
Last year, the default IL&FS has seen its impact on the lending market in the country's non-banking financial companies (NBFCs), causing a liquidity crisis. The government's move to stimulate the economy is creating confidence in investors, an analyst said, based on interactions with various industries.
In the 4th, the Reserve Bank has reduced the repo rate four times. Despite lower interest rates, the RBI has been forced to reduce the country's economic growth estimate from 5 percent to 8 percent for the current fiscal year.
Lack of demand is a major problem of the economy in the economy, which cannot be handled through a reduction in the repo rate, the analyst added.
Comments
Post a Comment