1 hr ago
Thakur Says Stability Can Help India Attract Global Capital
Anuradha Thakur said India needs a steady economy to attract money from investors around the world.
She spoke at an economic meeting in New Delhi.
She said borrowing money is becoming more expensive in many countries.
Investors may ask for more in return when they see greater risks.
Thakur said India has reduced its budget deficit compared with several years ago.
She also pointed to stable prices, healthier banks and strong foreign exchange reserves.
She said these kinds of policies can help any country borrow at a reasonable cost.
She warned that disagreements over trade and security can make money move less easily and raise its cost.
Economic Affairs Secretary Anuradha Thakur said India’s macroeconomic stability supports its efforts to attract global investment.
She said the cost of capital is rising as governments borrow more and investors seek greater compensation for risk.
Thakur cited a fall in the Centre’s fiscal deficit from 9.2% of GDP five or six years ago to a budgeted 4.3% this year.
She pointed to inflation targeting, low bank non-performing assets, strong foreign exchange reserves and recent rating upgrades.
She said geopolitical and trade fragmentation could make capital more expensive by reducing the efficiency of global flows.
- Who
- Economic Affairs Secretary Anuradha Thakur.
- What
- She argued that macroeconomic stability helps India compete for global capital as financing becomes more expensive.
- Where
- The Kautilya Economic Conclave in New Delhi.
- When
- Sunday; the article does not specify a date.
- Why
- She said fiscal credibility, price stability and a sound banking system can strengthen investor confidence and help countries borrow at a reasonable cost.
Key facts
- Speaker
- Economic Affairs Secretary Anuradha Thakur
- Event
- Kautilya Economic Conclave
- Location
- New Delhi
- Fiscal deficit
- The Centre’s deficit fell from 9.2% of GDP five or six years ago to a budgeted 4.3% this year, according to Thakur.
- Other indicators cited
- Inflation targeting, bank NPAs at multi-decadal lows and strong foreign exchange reserves.
- Global pressures
- Rising government borrowing, higher long-term bond yields, and geopolitical and trade fragmentation.
Quotes
Anuradha Thakur
India’s Economic Affairs Secretary
“The Centre’s fiscal deficit has come down from a high of 9.2% of GDP just five-six years ago to a budgeted 4.3% this year, and the fiscal anchor is moving in tune with global trends towards a declining debt-to-GDP ratio”
financialexpress.com
“These are not India-specific choices. Fiscal credibility, price stability and a sound banking system are the foundation for any country that hopes to borrow at a reasonable price when capital is scarce and expensive”
financialexpress.com
Sources
Related news
Rising Global Capital Costs Challenge Emerging Economies, Thakur Says
India’s Principal Secretary Warns of Trade, Capital and AI Risks
Mishra Says India Sustained Growth Amid Global Uncertainty
Das Says India Stands at Pivotal Developmental Moment
India Warned Growth Cannot Offset Rising Global Capital Challenges
RBI Governor Warns Against Complacency Despite Financial Stability
CBI Reviews Legal Issues Before Kaleshwaram Probe Decision
Delhi Police Detain AAP Workers Amid Election Chief Protest
Raahgiri Brings Cycling and Fitness Activities to Connaught Place
Rohini Court Lawyers Strike Over Alleged Advocate Assault
