Indian firms to report higher earnings on policy changes

SINGAPORE: Indian equities will see “double-digit” earnings growth for the next three fiscal years as changes to government tax and bad-loans policies allow more cash to be channelled into Asia’s third-largest economy, according to the nation’s largest brokerage.

Rules for tackling soured debt and a nationwide sales tax would increase savings and lower the cost of capital for companies, helping drive the pace of earnings growth to between 10% and 15% for each of the next three years, Shilpa Kumar, chief executive officer of ICICI Securities Ltd, said in an interview in Singapore.