Investors keen to invest in various asset classes in India : Rajiv Memani, Chairman of the E&Y's Global Emerging Committee
Updated on: 11 Jun 2016
India's macroeconomic fundamentals have had a stable record and investor sentiment is more positive now, said Rajiv Memani, Chairman of the E&Y's Global Emerging Committee.
Many sectors like automobile and building space are seeing demand uptick. While the Index of Industrial Production (IIP) has disappointed, a good monsoon is very crucial for revival of economy, he told CNBC-TV18's Shereen Bhan.
"Large appetite to invest in various asset classes is there," Memani said, adding, there is no shortage of liquidity in the global market. He expects fund flows to continue into India over coming months.
Domestic economy is also on a consolidation path now. Memani said more activity is visible across sectors and USD 8-10 billion transactions are expected in every quarter of current fiscal.
The only sector that will see decline in capital will be e-commerce, he added.
Alongwith financial sector, it is the tax side that has seen positive movements. "Tax story is significantly better," he said adding "Lot of (tax) clarifications are coming through." However, there is still lot to do on the tax side.
Below is the transcript of Rajiv Memani's interview with CNBC-TV18's Shereen Bhan.
Q: We were just talking about the dismal Index of Industrial Production (IIP) numbers, not a great start to the financial year, it continues to be patchy. What's your own sense about the strength of the economy? You talk to the who's who of business, what you picking up?
A: I think there is definite sense that things are improving, but I don't think it's sort of thumbs up overwhelming, suddenly things will change, but people can see the green shoots most companies that I talked to, more sector that I interact with clearly see an uptick, whether it is on the auto sector, whether you see the building products sector people are starting to see slight uptick, but there will be ups and downs. The monsoons are very, very crucial on how things go, but obviously these numbers are really disappointing, but overall if I was to talk to most companies and get their sense on what happening on the ground and if you look at data of what's happening in each sector, clearly there is increase, it's a very mild increase not a strong increase.
Q: Absolutely, we are seeing that across different sectors auto was one that you talked about where there is an improvement in sales, but what about confidence, what about the mood, what about the appetite to invest, to acquire. What's the sense that you get on that front?