Foreign Investors Withdraw Money From Indian Companies As Coronavirus Crisis Grows

The country was earlier facing an economic recession and is now in the grip of a pandemic. Meanwhile, new figures show that global trust in the country's companies has decreased and for the last five months, investors around the world are reducing their stake in corporate bonds in India.

According to data from the National Securities Depository Limited, the global investment of Indian companies has fallen by about 1.59 lakh crore in the last five months. Coronavirus is the biggest reason for investors' disenchantment with India.

Investors are worried that if the cases continue to increase in the same way, very soon India's weak health structure will collapse and the situation will be out of control. This is the reason that investors are not able to build trust in Indian companies.

Many Indian companies are finding themselves shrinking due to lack of money. Due to lack of labour, bank credit, layoffs, help from the government, investment, low capital, etc., companies have stayed away from growth. This year, with the decline of record corporate bonds, the difficulties for the already struggling companies have increased further.

On the other hand, rating companies are also constantly warning India on the economic front. Fitch Ratings has once again changed its outlook on India's ratings to negative on Thursday. Fitch said the pandemic significantly weakened the rate of growth. Similarly, Moody's also downgraded the country's rating earlier this month and kept its negative outlook.