Foreign capital helps ease India’s credit drought
As risk capital dries up at home, foreign institutional investors are proving influential
WITH THE economy battered by coronavirus, risk capital has dried up in India. In the past six months assets in credit-focused mutual funds, which play a crucial role as buyers forAA- to A-rated bonds, have declined from $13bn to $4bn. Lending by commercial banks, burdened by dud loans even before the pandemic, has withered. Thankfully, for some companies this domestic dry spell is being offset by a stream of foreign capital.
This article appeared in the Finance & economics section of the print edition under the headline “Sticking plaster”
Finance & economics October 3rd 2020
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