Signs of private sector investment cycle unfolding, says CEA Nageswara
“We do see signs of corporate sector beginning to make investment. There are some new investment announcement,” he said at an event organised by CII.
“So, it has been rising and once we get the full year data, the picture will be clear. We know that internal resource generation of the companies are at very high level. Therefore, they may not necessarily have to tap either the capital market or the banking channel,” he said.
Observing that energy is an important driver of economic growth, he said, it is energy security that is coming under a lot of pressure thanks to geopolitical developments and climate change.
“We do have a target to balance the proportion of non-fossil fuels and fossil fuels in our energy mix in terms of installed capacity by the year 2030… It is equally important we understand that there are important roles for fossil fuels – if not coal, then for gas, etc,” he said.
“And if we place economic growth in jeopardy, then the generation of fiscal and private sector resources will also be in jeopardy and therefore our ability to provide the right mind of financing for dealing with climate change will also be in doubt,” he said.
“I also don’t believe that in the US case, rate cuts are imminent. I don’t think so. Unless of course there are further financial accidents like we saw in March and April because if you look at the macro data, they are still holding up pretty well. So I think stable for longer might be more likely than looser policy, but that’s my personal view,” he said.