Recovery trends get a boost as business returns to normalcy

Rajesh Sharma Managing Director Capri Global Capital Limited

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What is your outlook on the Indian economy?

Pandemic has hit almost every aspect of life. Even global economists are finding it difficult to predict the pace of recovery. While the ambiguity around the same persists, we do see that India is comparatively in a better spot. We see the benefits of stimulus packages and government reforms picking up the pace and it has started delivering tangible results. The rural economy and markets have a larger role to play in bringing up the bottom-up impact to expedite recovery. While international funds may be lured with attractive investment avenues, improved government investments in rural infrastructure and employment will help drive domestic economic factors. This is a space where we see NBFCs to play a prominent role in ensuring that the benefits of government reforms reach the grass-root level.

What is your outlook on the NBFC sector?

The coordinated efforts from the government and RBI have created a roadmap to improve the liquidity position as well as easing out the business for the NBFC sector. While such liquidity measures and policy reforms may help the sector, a lot more needs to be done given the challenges faced by them not only due to COVID, but also those lingering from the pre-COVID times. The future posits that NBFCs will continue to experience robust growth with minimal instances of delinquencies if the credit flow doesn't stop and the risk mitigation mechanisms improve.