India may hit double-digit growth soon

mumbai — Despite the global equity market volatility, along with banking sector woes, the macro-economic scenario is extremely positive in India, says the top executive of the Bombay Stock Exchange (BSE).

“Banks’ books are getting cleaned up and NPAs (non-performing assets) are also being recognised in a transparent manner. With growing GDP, legislative reforms such as GST and IBC (Insolvency and Bankruptcy Code), India will hit double-digit growth rates soon,” Ashishkumar Chauhan, chief executive office and managing director of BSE, told IANS in an interview over the phone.

Indian exchanges recorded the highest IPO activity, with 90 IPO launches that raised $3.9 billion in Q1 2018 Ashishkumar Chauhan, CEO and MD of Bombay Stock Exchange

According to Chauhan, the ongoing strength of the Indian economy and growth was evident in GDP numbers, which were recently released. “India’s economy expanded at its fastest pace since December 2016 as government spending continues to drive economic growth,” he said.

“Under the newly-enacted IBC, the fear of losing control over their companies has prompted defaulting promoters to settle their dues of around 830 billion rupees before action was initiated,” he said.

Regarding IPO supply being affected because of low market buoyancy due to high interest and oil costs, Chauhan replied: “Globally, Indian exchanges recorded the highest IPO activity, with 90 IPO launches that raised $3.9 billion in the first half of 2018.”

He said that even at the BSE SME platform, there were 254 listed companies having a market capitalisation of 210 billion rupees.