CareEdge Ratings organised “Conversations 2024” conference to discuss ‘Global Capital Flow and Risk in a changing world order’
Calls out the need for international regulation for technologies to avoid any misuse that creates conflict in societies
Expert says India is accelerating its share of Global GDP
Pune: Addressing the CareEdge Ratings “Conversations 2024” conference, Shri Amitabh Kant, G20 Sherpa and Former CEO of Niti Aayog, Government of India stresses the need for promoting home grown credit ratings agencies. He mentioned that appropriate sovereign credit ratings are actually a very critical issue that impacts not only in India, but the entire emerging economies.
Addressing the keynote in the conference, Mr. Kant mentioned that for India to be a developed country by 2047, it’s very important that developing countries have the appropriate credit rating and calls for global credit rating agencies for biases, lack of intransparency for not objectively assessing India’s strong economic fundamentals. He said that the notion that developing countries are more risky investments is not solely based on objective financial metrics, but is significantly influenced by subjective assessment.
CareEdge Ratings successfully hosted “Conversations 2024”, an annual event at Hotel Conrad in Pune. The event titled “Global Capital Flow and Risk in a Changing World Order”, brought together distinguished thought leaders and industry experts. Shri Amitabh Kant, G20 Sherpa and Former CEO of Niti Aayog, Government of India, graced the event as the Chief Guest along with the Guests of Honor Shri Gulshan Malik, Deputy Managing Director, State Bank of India and Shri Babasaheb Neelkanth Kalyani, Chairman, Kalyani Group.
The event commenced with a welcome note by Shri Najib Shah, Chairman, CareEdge, who delivered the keynote address, setting the stage for an evening of insightful discussions. Speaking on the global macroeconomic shift, he said “The shift has accelerated post COVID, and continues which remain a defining moment. Right now, we are moving away from domination by single superpower, a single currency and moving towards a more balanced and complex system that’s emerging and evolving. Such environment also has implications for the financial situation. Destructive competition between US and China have ushered a new era of competing geopolitical and economies. The role of credit rating agency will be important here for acting in a transparent, competitive, professional manner.”
Mr. Mehul Pandya, MD & Group CEO of CareEdge Ratings said “The panel discussion addresses the context of global capital flow, growth drivers and challenges with the perspective of the impact of sovereign rating. The debt levels of advanced economies and the emerging economies are indeed different. The growth potential of emerging economies and the investment it necessitates needs to be looked at in the sovereign ratings methodology. These aspects need to be addressed in a transparent manner. We believe, that both the assessor needs to be transparent so that the entity being assessed knows about the methodology and how it’s being done.”
Mr. Kant called for Indians to be more ambitious. He believed that unless the country doesn’t get into emerging and cutting-edge technologies, it will be very difficult for India to grow rapidly. He said that the growth of India will come from cutting edge areas and therefore it’s important that if India is to grow at high rates, the challenge for India is really to go and high rates of nine to 10% per annum for three decades or more. However, he also warned on how technologies can be misused for conflict within societies and calls for a need for international regulation much like atomic energy, looking into the basic premises ethics and costs on which some of these technologies are faced and how they will really lead to the benefit of society.
Adding to the point, Shri Babasaheb Neelkanth Kalyani, Chairman, Kalyani Group mentioned that India has potential to grow at 10% and calls out the need to focus on manufacturing.
Shri Gulshan Malik, Deputy Managing Director, State Bank of Indiaadded that banking sector in India is adequately capitalized as well as the ready to fund the next phase of growth which is very critical.
