Despite global challenges, India is in a good place. The headwinds emerging in the West may not impact us even in the intermediate period, said KV Kamath, Chairperson, National Bank for Financing Infrastructure & Development (NaBFID), in an interview with ET Now.
"In our case, we have managed it excellently well with interest rates slightly below inflation and targeted inflation set to come down. So, you have created an environment for growth. Global challenges notwithstanding, we are in a good place. Yes, there will be some turbulence as things unravel in the West, but I do not think this will impact us even in the intermediate period," said Kamath.
Kamath said the manufacturing sector is doing good with clean balance sheets and regular cash flows.
"I think we can meet any growth requirements – bet it greenfield or brownfield -- with hardly any debt, or maybe marginal debt in a greenfield. The services sector is performing wonderfully well, and I believe it will continue to do so," he told ET Now.
Kamath said he was more bullish than he had ever been in his 50- year career in the banking business.
He pointed out that we have low-interest rates, strong balance sheets and lendable capacity with banks and there is a need for investment also.
"Given this and of course there is a new driver in digital India, which will be around 5% of the economy today and, in the next five to six years, will constitute 25 to 30% of the economy. So, at this point in time, I am more bullish than I have ever been in my 50- year career in the banking business," said Kamath.
Disclaimer: This article is based on an ET Now interview. The views and recommendations given in this article are those of the analyst. These do not represent the views of MintGenie.