00:00 There is a clear link with the equity markets, which means cost of capital is expected to
00:05 move down, which means it will spur further investments.
00:09 And if you see when this government came to power in 2014, the idea was that there was
00:14 no investment of any kind from the private sector.
00:17 First five years, they had to carry the can virtually themselves.
00:21 It was only PSU, PSU, PSU carrying the CAPEX can, if you will.
00:24 The next five years, incentives were given and some investments came through and other
00:31 aging investment, animal spirits around, I think in many large groups is probably there.
00:36 And now for the first time, I'm seeing private sector step up in a big way.
00:40 So as cost of capital drops, international bond flows move into India, which is also
00:45 you know, I mean, the big Philip expected next year.
00:50 You're going to be talking about interest rates that could be pressurized to move lower
00:54 at a time when investments are actually being made, which actually acts as a greater Philip
00:57 for the investing community.
01:00 And therefore, the equity markets will be beneficiaries that you have interest rates
01:04 trending down and you have a scenario of investments and you have therefore growth built in, not
01:09 just organic growth or pricing power or cost cuts, which have been the way corporate balance
01:13 sheets have moved in the last several years.
01:15 That now you'll actually have capacities moving up, you'll have, you know, organic plus, as
01:22 I said, acquisitive or inorganic growth in addition to this.
01:24 So I think it's a big signal that you needed this bond market Philip, which is why I think
01:32 the thought about including ourselves in bonded disease, getting overseas flows and keeping
01:38 our fisc in order is actually a three pronged sort of strategy towards attracting more money
01:44 for investments.
01:45 Now, whether it's foreign investors coming into India, as in MNC setting up shop here
01:49 or Indian setting up more capacities, etc.
01:52 That's a matter of detailing.
01:54 But I personally think the investment climate has improved dramatically.
01:58 And these small signals or small tweaks are the first sort of green shoots in that direction.
02:04 Thank you.
02:09 [music]
Comments