India offers companies the opportunity to allocate additional capital that can diversify risks away from China, according to BNP Paribas SA.
Money flowing to India, Asia’s third-largest economy, will help jump-start its supply chain and boost manufacturing as the country recovers from pandemic shock, said Aymar de Liedekerke Beaufort, the bank’s territory chief. French for India.
“I think India is seen as a strategic country, is geographically well positioned and it is a diversification from China,” he said Thursday in an interview with Bloomberg TV. “So when you have a lot of capacity in China, when you are looking for somewhere else to put that extra capacity, India is on the way.”
A regulatory crackdown on China’s FinTech sector is diverting billions of dollars to other countries, including India, which is set to experience a record year of stock offerings. It comes at a time when Indian Prime Minister Narendra Modi has announced his intention to invest 100,000 billion rupees ($ 1.3 trillion) in infrastructure and aims to do so by competing for investments seeking to leave China.
BNP Paribas, the second oldest foreign bank in India which received € 100m in equity from its parent company last year, is looking to expand its investment banking team, hire digital banking and to recruit more women, Beaufort said.
The company is also looking to expand its sustainable finance portfolio and will try to finance companies with good quality solar and wind projects, he said. BNP Paribas in India has helped raise $ 2.3 billion in green and sustainable loans and arranged more than $ 2.9 billion in ESG bond issues in 2021.
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