What do you think about the state of the economy after the visible spurt in the pace of vaccination?
Our in-house business activity index is at pre-pandemic levels. But to come out of the losses of the last 20 months, the activity level will have to strengthen further. There was already a tendency to slow down before the pandemic; So coming before the pandemic is positive but it is not good enough. in this rate development must be more because cash flow Many businesses have to be repaired.
Private capital investment hasn’t really grown for many years. What trends do you see?
Recently, we have seen that some sectors, especially iron and steel, aluminum and other key sectors have actually affected the rope on capacity utilization. We are seeing some green shoots in terms of new investments; So this is a major departure from pre-pandemic levels. I expect the construction sector to be at the forefront of being a major growth driver and would be linked to iron and steel and cement etc. So these areas will go ahead. In the context of chip manufacturing, government initiatives and various Production Linked Incentives (PLIs) have been announced recently, which will also support capacity building.
But are you seeing demand for credit from these sectors?
Yes, in case of iron and steel, we are seeing some investment proposals and people have approached us for fresh loans as well. People are also looking at expanding brownfield capacity, which means they have very clear visibility on demand, which is also good for capacity utilization. These are the positive things that we are seeing in the last six months. The Government of India and other public sector entities are also in their investment process. The road sector continues to perform well and we keep getting offers. These will ultimately be the drivers of the economy.