Business
Very important source of capital: Neelkanth Mishra, an economist, urges China to increase its contribution


By Kajal Sharma - 11 Jan 2025 10:17 PM
Mishra claimed that given the extremely low yield of 1% on government bonds and the negative foreign direct investment, India's northern neighbor will be "spewing out" a lot of cash, drawing comparisons to Japan in the 1980s.Axis Bank chief economist Neelkanth Mishra, who also serves on the Prime Minister's Economic Advisory Council, urged India on Friday to increase its reliance on Chinese investment.
Mishra said that given the extremely low yield of 1% on government bonds and the negative foreign direct investment, India's northern neighbor will be "spreading out" a lot of wealth, drawing comparisons to Japan in the 1980s.Given the tense relations between India and its northern neighbor, Mishra, a part-time member of the EACPM, acknowledged the delicate issues at hand. He also cited the 2020 "Press Note 3" that attempted to limit flows from China.We already have money, such as China Light and electricity, which owns electricity facilities in India. At a conference hosted by the Sebi-backed NISM here, Mishra stated, "It's not that we haven't seen that, but (Chinese) can be a very important source of capital."