Get latest articles and stories on World at LatestLY. India s structural reforms approach has ensured that it remains a globally attractive destination for investment and the country is well-positioned in the global economy, allowing it to grow briskly, possibly faster, in the coming years, Union Finance Minister Nirmala Sitharaman has said. World News | India Remains a Globally Attractive Destination for Investment Due to Structural Reforms: FM Sitharaman.
The second wave of Covid infections has increased financial risks to households and small businesses, Moody’s has said. This, in turn, Moody’s said may hurt bank profitability going ahead. “New loan forbearance and liquidity measures by the central bank, and government’s plans to set up an asset reconstruction company to take over stressed loans, along with modest recapitalization of public sector banks, will mitigate, but not eliminate, sector risks,” Moody s said. India’s financial sector, the rating agency said, is the main driver of potential event risk to the sovereign. Structural inefficiencies, it believes, continue to constrain growth potential and limit resilience to shocks. If implemented effectively, government reforms that target these challenges would be credit positive. However, the relatively low effectiveness of previous reforms informs our medium- to long-term growth view.
Amid the resurgence of Covid-19 and with states imposing lockdowns, non-banking financial companies (NBFCs) are seeking a revival of the debt restructuring scheme. Those who had availed themselves of the recast earlier should get a second chance, the Finance Industry Development Council (FIDC) said in a letter to the Reserve Bank of India (RBI).
In the letter, addressed to RBI Governor Shaktikanta Das, the industry lobby group said, “Considering the severe second wave of Covid-19, the retail borrowers, including the [micro, small and medium enterprises], as also the retail and wholesale trader industry shall be in urgent need of support from the lenders, to revive their economic activities.”