India remains the fastest-growing major economy in the world. India is expected to grow into a $ 9.6 trillion economy by 2020.
The current government has introduced several key initiatives such as ‘Make in India’, ‘Skill India’ and ‘Start-up India’. The government aims to see a massive activation of digitisation of financial services in the country. Further, the GST bill is the biggest tax reform being undertaken since Independence.
There is enough economic activity in the country with large spending budgets for rail, road, shipping and defence ministries. For a massive country such as India, improvement in infrastructure is a necessity. Over the next decade, an estimated $1.5 trillion is needed to create infrastructure, overhaul and refurbish existing infrastructure. The Government of India is expected to invest highly in the infrastructure sector, mainly highways, renewable energy and urban transport in the coming years. The government is taking every possible initiative to boost the infrastructure sector. The earnings outlook and the valuation of the infrastructure sector are both positive and attractive. Following several initiatives such as ‘Housing for All’ and ‘Smart Cities,’ the government has been working on reducing the bottlenecks that impede growth in the infrastructure sector. In almost all sectors such as power, railways, metro rail, ports, irrigation, pipelines and so on, the growth potential is immense. Though the country is seeing an infrastructure investment boom, these investments need to be appropriately managed so as to trigger further economic and financial growth. Sufficient infrastructure spending will also initiate investments in other sectors. Growth in the infrastructure sector will indirectly accelerate growth in several sectors such as cement, engineering and capital goods, automobiles, auto components, iron and steel, etc.
The Government of India recently introduced the Insolvency and Bankruptcy Code which will resolve the financial issue of defaulters. This initiative will turn the wheels of financial growth faster. For the first time in decades, there is a level playing field at the negotiating table between the bankers and the borrowers. The new bankruptcy procedure, which lays down timeline to recover from defaulters unlike discretionary and opaque ways of the past, capping of bank loans to conglomerates and the increasing realisation to minimise the asset-liability mismatch, is promising a new Indian banking landscape.
India has been ranked as the most attractive investment destination in the world, offering the highest expected returns on incremental capital over the next couple of years. It is expected that healthcare, financial services, IT and ITES will see the highest investment activity.
LSI Financial Services Pvt. Ltd with its pan India presence, continues to be a one stop financial service provider. The company in addition to its focus on Debt Syndication, Issue Management (as a Category I Merchant Banker), PE advisory, Financial Restructuring Advisory and M&A Advisory, lays significant stress on creating knowledge pools on economically important topics. We have gathered significant knowledge and pride ourselves on our ability to tackle the challenging assignments across varied sectors, in the areas of sourcing funds, be it in the form of debt or equity and also for our expertise in advising in the M&A space. Our two decade old understanding of the needs of the clients in debt, equity and M&A enables us to customize the financial solutions to such requirements. Additionally, in order to ensure consistent and high-quality solutions, we accord premium on recruitment of human resources and consequently, LSI has in place a highly motivated team that shapes its mantra of “Adding Value, Partners in growth” into reality.
We, at LSI, take pride in being client-centric and look forward to continuing our service to the economy by enabling optimal financial solutions in the domestic and international arena.