The good news from India’s big business triggered the stock market bounce. A swift, big capital raise will follow this good news. In the near-term, this is going to be the story of our markets.

India’s big business has been under-capitalised. Companies already are brimming with debt. Now, even near the market bottom, they need to raise equity. Our big business is hungry for equity. Every market bounce will be capitalised and sold. Companies will issue fresh paper to raise equity. They will sell their investments in other companies.

Now, the investment appetite for Indian equities must exceed that of the bull run of 2017-18. Unlike 2017-18, given the global economic impact of COVID, we are unlikely to see ample natural appetite outside India. We are also yet to assess the current strength of global investment appetite for India. The coming weeks will give us that sense.

The onus of creating that strong appetite for India lies squarely with the government. A strong reform push can trigger a strong global appetite for Indian investments. We need bigger ideas which can create an unprecedented entrepreneurial economic resurgence. We know what it takes. And we talk the right things. Now, walking the talk cannot wait.

It is still going to be tough to gain leadership in the next global investment resurgence. But we have no alternative. If we miss out on this opportunity, we would have ceded the second chance to rebuild a great economy. The time to act is now.

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