Credit rating agencies now looking at India with ‘realism and positivity’: FM

Our Bureau New Delhi | Updated on October 07, 2021

Centre pursuing inclusion of Indian govt bonds in global debt indices

Finance Minister Nirmala Sitharaman on Wednesday said that government was actively pursuing inclusion of government bonds in major global indices and one could hopefully expect something sooner on this front.

She also said that Indian start-ups have so far created 65 unicorns out of which 28 have been created in 2021 alone.

Addressing the first ever “India Maximum” conclave organised by the Indian Private Equity and Venture Capital Association (IVCA), Sitharaman said in her virtual address that fintechs have garnered the largest share in these unicorns.

“This shows there is increased activity and the increased activity in this space. Private equity firms have all played their due role in creating these unicorns,” she said.

In venture capital industry, an unicorn refers to a start-up that has reached valuation of $1 billion.

In her address, Sitharaman narrated 20 different points to highlight that the Modi-led government is continuously engaging and responding with the concerned stakeholders.

She said that a series of reforms had been unleashed in the recent years which in turn has helped to open up to the fullest capacity the potential of Alternative Investment Funds (AIFs) and make them far more attractive for fund houses and investors.

SEBI has taken several steps to ensure that the AIF framework is facilitative for the industry. AIFs have also been given flexibilities in undertaking investments in the opportunities available for them.

Also read: Keeping a watch on US taper, other issues: FM

Sitharaman also highlighted the strong rebound in FPI flows post the outflows in the onset of first wave of COVID19 in March last year.

Compliance requirements

The Finance Minister said that government was committed to provide a level playing field for investors of all categories with minimal compliance requirements along with maximum growth opportunities.

Without taking the name of Moody’s, which has now elevated India’s sovereign rating outlook to “stable” from “negative” while retaining the rating at ‘Baa3’, Sitharaman said that credit rating agencies are looking at India with lot more “realism and positivity” and not so much cynicism about the country. “I am happy that credit rating agencies are able to see us with right perspective,” Sitharaman added.

She urged all corporates to undertake the best possible governance practices with full transparency. She appealed to all stakeholders to ensure that investor protection be given due consideration so as to make the markets more robust and resilient.

Published on October 06, 2021

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