The Stubborn Cost of Capital in India (Episode 3)

The startup crowd, from Flipkart to Swiggy to Paytm, are all owned by funds from China, Japan or the US. And now, other large companies too are seeing increasing foreign ownership - from an ICICI Bank to HDFC to even the now beleagured Jet Airways by Etihad. Liquor brands in India also - McDowell/United Spirits is now owned by Diageo, Kingfisher beer by Heineken, and so on. The large standout is still Reliance Industries, but by and large, foreign investors find India a lot more attractive than Indians do, it seems. 

Read full transcript: https://www.capitalmind.in/2019/03/podcast-the-stubborn-cost-of-capital-in-india-episode-3/

Why is that?

Shray Chandra and Deepak Shenoy explore the space - high interest rates have raised the cost of capital in India, to a point where it's actually hurting business growth. After all, if you can get "safe" returns that are 5% more than inflation, why would you bother taking risks?

Deepak discusses a key aspect as well - easing up debt flows from outside India simply because the cost of capital outside India is much much lower. That, and so much more, at the Capitalmind Podcast.

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