India Ratings' chief Atul Joshi has said foreign reserves are set to expand thrust after 2014 general elections, but a 'enchantment' work is not likely for the generally financial system in the abrupt prospect.
India Ratings is the Indian entity of universal enormous Fitch Ratings cluster.
Many foreign nest egg are being in custody back as investors are meeting on the hedge for a new government to be bent, but their decisions are improbable to be reliant on any fastidious get-together coming to the influence and would be frequently made on the basis of governance solidity, he said.
Asked whether trade and industry tricks will gain thrust after common elections, India Ratings & Research's Managing Director and CEO, Joshi said: "It will gain energy and definitely some funds are being in custody back".
He said that no large-scale greenfield projects are imminent up, since of a stipulate decelerate as well as the corporates in India creature over-leveraged in requisites of arrears.
Joshi auxiliary said that Indian corporates "need to set their house in order... The corporates need to leave go of their own control. That is a big rationale for corporates not setting up fresh projects. Let's not fault the government single-handedly. The corporates also have a part in that."
India Ratings' chief Atul Joshi has said foreign investments are set to gain momentum after 2014 general elections, but a 'magic' work is unlikely for the overall economy in the immediate future.
India Ratings is the Indian unit of global giant Fitch Ratings group.
Many foreign investments are being held back as investors are sitting on the fence for a new government to be formed, but their decisions are unlikely to be dependent on any particular party coming to the power and would be mostly made on the basis of governance stability, he said.
Asked whether economic activities will gain momentum after general elections, India Ratings & Research's Managing Director and CEO, Joshi said: "It will gain momentum and certainly some investments are being held back".
He said that no large-scale greenfield projects are coming up, because of a demand slowdown as well as the corporates in India being over-leveraged in terms of debt.
Joshi further said that Indian corporates "need to set their house in order... The corporates need to release their own leverage. That is a big reason for corporates not setting up new projects. Let's not blame the government alone. The corporates also have a role in that."
