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The return of risk capital

Capital will always be available if returns are high enough to justify the risk

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Diva Jain
As the Indian economy slowly emerges from the havoc of the Covid-induced lockdown, the magnitude of damage and the channels through which it has been sustained by the economy, merit greater examination. While liquidity and cash flow have been the right buzzwords for describing the immediate impact of the lockdown, the true economic impact of Covid is likely to be deeper and more worrisome.

A lockdown does not just impact the cash flows but has a cascading economic impact on the balance sheet, cost structure and incentives for capital formation as well. Government measures to alleviate liquidity distress may help in
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper

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First Published: Jun 14 2020 | 9:03 PM IST

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