Impact of high cost of capital on mfg, infra and real estate is being felt: FM
Updated: Sep 21, 2015 02:28:18pm
Hong Kong, Sept 21 (KNN) The cost of capital is still high in India, Finance Minister Arun Jaitley said adding that its impact on infrastructure, manufacturing and real estate sector, which is an important engine of growth in India, is itself being felt.
Addressing global investors in the international financial centre, Jaitley said domestic private sector investments have been slow and high cost of capital was also affecting several sectors.
Jaitley said the government is continuing with its reforms agenda, although it still has a lot of distance to cover in terms of changes and reforms.
"The cost of capital is still high and therefore its impact on infrastructure and manufacturing and its impact on real estate sector which is an important engine of growth in India is itself being felt," he said.
Jaitley also expressed concern over the slow domestic private investments.
"This is one account of the fact that excess capacity had been built in the past and therefore a large number of domestic companies are working with constraints in the wake of global demand slowdown.
"But once the domestic demand builds up, I am sure our companies are quite capable of overcoming this challenge," he added. (KNN Bureau)
Addressing global investors in the international financial centre, Jaitley said domestic private sector investments have been slow and high cost of capital was also affecting several sectors.
Jaitley said the government is continuing with its reforms agenda, although it still has a lot of distance to cover in terms of changes and reforms.
"The cost of capital is still high and therefore its impact on infrastructure and manufacturing and its impact on real estate sector which is an important engine of growth in India is itself being felt," he said.
Jaitley also expressed concern over the slow domestic private investments.
"This is one account of the fact that excess capacity had been built in the past and therefore a large number of domestic companies are working with constraints in the wake of global demand slowdown.
"But once the domestic demand builds up, I am sure our companies are quite capable of overcoming this challenge," he added. (KNN Bureau)
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