India To Emerge Stronger From Global Crises, 'Fairly Insulated' With Policy Support: IIFL Group's Nirmal Jain
The government and regulator are appearing to be working in sync to make sure people can take advantage of the situation, Jain said.
India will come out of the global crises strong on the back of conducive policy and regulatory changes, according Nirmal Jain, founder, IIFL Group. India is a sweet spot with a huge domestic market with good demography. India is fairly insulated from global turmoil.
"I'm fairly optimistic. We will come out of the crises (trade and geopolitical volatilities) as a unique large country benefitting and becoming stronger from the crisis,"Nirmal Jain, Founder, IIFL Group
The government and regulator are appearing to be working in sync to make sure people can take advantage of the situation. Tariff are causing jitters in financial markets, problems with immigration amid geopolitical wars. It is an unprecedented situation in which India is fairing well, he said speaking to NDTV Profit.
India's major import commodity, crude oil's prices will be in a comfortable range. Policy makers and regulators are very alert on this front, he said.
Nirmal Jain, founder, IIFL Group was speaking to NDTV Profit.
The last six months have provided a certain degree of clarity and stability, which the non-banking financial sector was looking for. The Reserve Bank of India's consistent communication and nuanced approach to supervision, along with the regulator's willingness to engage with the sector and understand the underlying factor for inflation better, have helped in restoring confidence. These are also contributing to the ease of concern, he said.
Earlier it was felt that while the government is trying to push for growth, monetary policy is more concerned about inflation. There was a possible contradictory situation in which the tight monetary policy would not help inflation, which is caused by factors beyond its control, he said.
There was a concern because of liquidity, which has eased now with the combined effort of monetary and fiscal policies, he said.
There is still caution in the NBFC sector. The RBI's compliance and regulatory framework remained strong and strict. Monetary policy is different compared to regulatory, compliance, and vigilance. The caution and discipline will continue, he said.
The underlying factors of inflation, food and fuel, do not depend on monetary easing. Inflation numbers are well within control. Growth will happen with a lag.
