Rating agencies now look at India with ‘realism and positivity’: FM

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Finance Minister Nirmala Sitharaman said on Wednesday that the government was actively pursuing the inclusion of government bonds in major global indices and there was hope for something sooner on that front.

She also said that Indian start-ups have so far created 65 unicorns, 28 of which were created in 2021 alone.

Addressing the first ever ‘India Maximum’ conclave organized by the Indian Private Equity and Venture Capital Association (IVCA), Sitharaman said in his virtual keynote that fintechs have garnered the largest share of these unicorns.

“It shows that there is increased activity and increased activity in this space. Private equity firms have all played their part in creating these unicorns,” she said.

In the venture capital industry, a unicorn refers to a start-up that has reached a valuation of $1 billion.

In his speech, Sitharaman recounted 20 different points to emphasize that the Modi-led government is continuously engaging and responding with relevant stakeholders.

She said a series of reforms have been launched in recent years which have helped to unlock the potential of alternative investment funds (AIFs) to the fullest and make them much more attractive to fund companies and investors. .

SEBI has taken several steps to ensure that the AIF framework is facilitative for the industry. Alternative funds have also benefited from flexibilities to undertake investments in the opportunities available to them.

Also read: Keeping tabs on US tapering, other issues: FM

Sitharaman also pointed to the strong rebound in REIT flows after exits during the start of the first wave of COVID19 in March last year.

Compliance requirements

The finance minister said the government is committed to providing a level playing field for investors of all categories with minimum compliance requirements and maximum growth opportunities.

Without taking the name of Moody’s, which has now raised India’s sovereign rating outlook from “stable” to “negative” while retaining the rating at “Baa3”, Sitharaman said credit rating agencies are watching India with much more “realism and positivity”. and not so much cynicism about the country. “I’m glad the rating agencies can see us with the right perspective,” Sitharaman added.

She urged all companies to adopt the best possible governance practices with full transparency. She called on all stakeholders to ensure that investor protection is duly taken into account in order to make markets more robust and resilient.

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