The global growth is going to be constrained by enormous amount of debt this year, said Mark Matthews of Bank Julius Baer & Co.

“The growth is going to be constrained by the enormous amount of debt that has been piled on to prevent a complete economic calamity as a result of all this lockdown this year,” said Matthews in an interview with CNBC-TV18.

“In an environment of low global growth, typically investors go out of their way to invest in and pay up for growth in the few companies that have it. The star of that show for the last 8 years has been the technology sector and the US. Unfortunately, outside of US with the exception of China, there isn’t any major technology sector and that includes most EMs and that includes India. In India, there is a value picture. People don’t want value right now, they want growth,” he added.

Indian banks don’t have enough capital to lend because they are beleaguered by non-performing assets (NPAs). This will resolve itself organically through time simply by having deposits moved from the lower quality banks to the good quality banks, said Matthews.

According to him, the Indian equity market facing the currency risk might be keeping people away. He is 'neutral' on Indian equity and 'overweight' on China.