Prime Minister Narendra Modi will soon meet representatives of 15 leading global fund houses. The move is aimed at attracting long-term capital to help revive the economy.
“You actually have these fund houses from all over the world getting in touch with us and saying if you can provide some good assets which require patient capital and gives not very high returns but stable returns. So that is another area we are looking at,” economic affairs secretary Tarun Bajaj said at a virtual event conducted by the Confederation of Indian Industry, while announcing the PM’s meeting with the fund houses to get a better view from them.
He said pension funds from Canada, Australia and Europe have been talking to the government and are eyeing investment opportunities in India and strongly backed the widening and deepening of the bond market. Bajaj also called on other regulatory agencies, such as those in the pension and insurance sectors, to help deepen the market.
Earlier finance minister Nirmala Sitharaman had also indicated that she had not closed the option of another stimulus to revive the economy. The government and the Reserve Bank of India have taken a series of steps for this.
The DEA secretary also said that recent data on Covid-19 infections showed a downward trend, which should provide confidence to the private sector to come back but urged caution given the fact that the virus was still around. “We still have to be cautious. We can’t let our guard down,” he said.
“I am seeing positive signs. We had a flight of capital in the month of March and in fact March to May we had a massive outflow of funds but over the last few months we have had positive signs. FPI as also AUMs of the mutual funds have been looking up. I think this is a good sign.”
He urged market participants to look at the opportunities provided by IFSC at Gandhi Nagar and talked about the Bullion Exchange being set up there and indicated that there would be deals in the next few months. “We are the second-largest consumer in the world and we should set up that market and create that market.”
The DEA secretary also said more funds were coming through the InvITs and REITs after the government tinkered regulations a bit He said DEA had made suggestions that assets can be monetised by other departments similar to the setting up of Inveits by two public sector entities