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Private investment decline worrisome: World Bank
New Delhi, March 14 (IANS) The World Bank on Wednesday said it was worrisome that the rate of private investment in India had remained low, despite all enabling factors including improvement in macroeconomic stability and increased public investment.
In its India Development Update report which takes stock of the Indian economy, the World Bank said the investment rate had declined and remains low “despite the fact that macroeconomic stability is much higher, public investment has picked up and its quality has improved”.
It added that business environment had also improved in the country and the global liquidity had continued to remain positive.
Not only that, the Indian equity markets have also done well offering good valuations to the companies looking to raise money. “All these factors should have helped spur private investment, yet it has been enigmatically subdued,” the report said.
Offering insights into the reason behind this contradiction, the World Bank report said the slow pace of investment growth could be due to deleveraging.
“Indian businesses over invested and over leveraged during the boom years. Yet due to slow pace of resolution, business cannot deleverage quickly and start investing afresh.”
There may also be sectoral constraints to investments in sectors such as construction, leather, infrastructure, telecom and energy sector, it added.
“Going forward, de-risking the private sector may be important, as it may be to ensure an environment of policy certainty. Understanding and relieving the generic, spatial or sector specific constraints to investment growth is important,” the report said.
The World Bank, in its biannual flagship publication, also took note of the high balance sheet stress in the banking sector especially the non-performing assets crisis.
It said the genesis of the prevailing issue could be traced to the period of exuberance in bank credit growth during 2004-08, followed by the evergreening of loans in response to the crisis.
It said the new Insolvency and Bankruptcy Code (IBC) was an important step toward changing the credit culture but the policy would take time to be effective in cleaning the balance sheets and ultimately changing the credit discipline in the country.
The report added the IBC was unlikely to improve credit adequacy of banks on its own.
The World Bank also made a case for making Indian exports competitive in the global market. It said that despite an acceleration in export growth, India had “barely managed to keep pace” with it since the global financial crisis, reflected in its stagnant or even declining share of world exports.
“Significant improvement in the competitiveness of Indian firms is key to developing its role as a global exporter,” it said.
–IANS
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Dr. Abhishek Verma Dedicates a Shelter in Memory of His Mother, Veena Verma, at KGMU; Inaugurated by Daughter Nicolle Verma
World-renowned business tycoon Dr. Abhishek Verma has supported Foodman Vishal Singh’s Hunger-Free World mission. In memory of his mother, Late Veena Verma, who was a 3 term Rajya Sabha MP.
Dr. Verma dedicated a state-of-the-art free permanent shelter for the attendants of patients at KGMU Medical University, Lucknow, under the aegis of Vijay Shree Foundation. His daughter, Nicolle Verma, inaugurated the shelter.
During the event, Foodman Vishal Singh honored Nicolle Verma by presenting her with a memento. Mrs. Nidhi Sharma and Avantika Yadav, associated with the organization, welcomed her with garlands. Following this, Nicolle Verma distributed essential items to the attendants and also handed out fruits. She became emotional remembering her grandmother on her birth anniversary.
On this occasion, she also inaugurated the “Veena Verma Sevalaya” in memory of her grandmother, Veena Verma, to serve the attendants. She expressed, “I feel proud that my family is engaged in nation-building as well as social service. Today, in collaboration with Vijay Shree Foundation founder Foodman Vishal Singh Ji, I feel immensely proud to dedicate this shelter for the poor, helpless, and needy attendants of patients battling serious illnesses like cancer. I am honored to be associated with the Hunger-Free World Mission for humanity.”
Inspired by the continuous humanitarian service provided by Vijay Shree Foundation over the past 17 years, Nicolle Verma donated 10 lakh rupees to support the cause. The purpose of this donation is to ensure that services continue for the needy attendants of patients suffering from severe illnesses in hospitals, as facilitated by Foodman Vishal Singh.
It is noteworthy that Dr. Abhishek Verma’s family has a legacy of public and philanthropic service. They are helping millions to carry forward the values and service work of their parents. On the occasion of his mother’s birth anniversary, Dr. Abhishek Verma dedicated this state-of-the-art permanent shelter at Lucknow Medical College to serve the attendants of patients through the Vijay Shree Foundation.
Supporting Foodman Vishal Singh’s Hunger-Free World mission, Dr. Abhishek Verma assured that he would continually support keeping this flame of humanity alive. He also promised to assist in providing medicines to the helpless patients.
Continuing her grandmother’s legacy of service, Nicolle Verma personally served food to the needy patients and attendants. She said, “It is our good fortune to have received the joy of doing this noble work today through Foodman Vishal Singh. I have taken another step forward in carrying my family’s values and cooperation by joining hands with the Vijay Shree Foundation. My father taught me to serve and help the needy, and I feel happy when I bring a smile to someone’s face.”
On the birth anniversary of the late Veena Verma, the event organizer, Vijay Shree Foundation founder Foodman Vishal Singh, said, “We feel proud and happy that Dr. Abhishek Verma, a globally renowned business tycoon, has extended his support to uplift our country from the hunger index. Today, on his mother’s birth anniversary, he inaugurated a state-of-the-art permanent shelter at Lucknow Medical College, which will always be helpful for the needy attendants of patients. It is a pleasure for me and the organization to receive the affection of Mr. Verma.”
The event was attended by General Manager Verma Family Office Hemant Garg, Sonu Rajput, and the organization’s volunteers, including Sandeep Singh, Parmeshwar Ji, Prashant Rao Gautam, Balram Singh, Ramesh Chaudhary, Suman, Jeetu, Anil, Suraj, Vinay, Manish Bhadauria, Manas Mehrotra, Vivek, Apurv, Happy, and others.
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