Investors—domestic and international—continue to remain optimistic about India’s growth potential despite the sudden spike in the number of Covid 19 cases in the country.
Company executives said that there has been no change in their investment plans so far.
“Covid 19 pandemic is not India specific, it has hit the whole world…many countries are reeling under the second wave, so while it is worrisome, it is not something which is related to the country’s policymaking,” a senior executive of a Gurgaon-based multinational firm said.
The Covid 19 second wave may temporarily dampen sentiments, but the country’s fundamentals over the medium to long term have remained in-tact.
In an interview to PTI earlier this week, Deloitte CEO Punit Renjen said that the 21st century is "India’s century".
“Investors remain upbeat about India, though there has been a surge in Coronavirus cases. Foreign companies that are looking to invest, are looking at India,” Deepak Bagla, MD and CEO, Invest India told India Narrative.
Bagla said that several companies are in talks for greenfield as well as brownfield investments.
Invest India — the nodal body under the Ministry of Commerce and Industry, facilitating fresh investment in the country—has also set up a special platform to provide comprehensive resource and real time information about the country’s Covid 19 response in relation to the Centre and state governments.
Sanjeev K. Ahuja, editor, Asian Community News (ACN), a platform, which tracks the south-east Asian community in India, said that most Korean and Japanese companies that are looking to invest in India are currently chalking out backend work.
“For Korean and Japanese companies, India remains a hot investment destination and the surge in Covid 19 cases has not had any impact on their investment plans. At present most companies are tying up all the loose ends so that once the pandemic is over, the investments can flow in,” Ahuja said.
Ahuja added that the health crisis has impacted southeast Asia earlier too. In 2002, China and several other southeast Asian countries were hit with Severe Acute Respiratory Syndrome (SARS) and H1N1 or Swine Flu among others.
Ratings agency Moody’s said that while the various Covid 19 induced restrictions will dent economic activity and even hurt market and consumer sentiments, localized containment measures besides the vaccination drive would ease the overall hit on businesses.
Global brokerage Nomura too lowered its growth expectations for India from the earlier 13.5 per cent for 2021-22 to 12.6 per cent.
Though the projected growth rate is still above the average, experts said that India must continue to focus on its economic activities.
