Growth prospects are rising: Industry
NEW DELHI: Less than six months since the Narendra Modi-led government took office, the momentum for reforms in India appears to be building, with growth prospects rising, business and academic leaders said at the India Economic Summit organised by the World Economic Forum and the Confederation of Indian Industry on Wednesday.
“Things are moving,” said Anand Mahindra, CMD, Mahindra & Mahindra. “Things such as licences, which were stuck in the pipeline, have been opened up. The job in India is about plumbing — you basically have to clean the pipes, which were clogged... Right now, the mood is anything but paralysis. The world is attracted to the energy of this new Prime Minister and the new government.” “I see a significant shift in the economy in 2015,” said Uday Kotak, executive vice-chair- man and MD, Kotak Mahindra Bank said on the sidelines of the summit.
Gary Coleman, MD, global industries, Deloitte, told HT: “As a foreigner, we see a Prime Minister who communicates a new message, consistent and is fairly progrowth. MNCs have reasons to continue to look into India.” Gita Gopinath, professor of economics at Harvard University, echoed similar views. “India is at a turning point right now.”
The government has implemented reforms such as improving labour market compliance and deregulating diesel prices, Gopinath said, adding, “If we see two or three quarters of steady growth, we can then step back and say the reforms are working.”
While the Prime Minister does not have to act precipitously on anything, “it is now time to be press our foot on the accelerator,” Mahindra said. Ajay S Shriram, president, CII and chairman, DCM Shriram, said: “This government’s policy is continuously to make changes in all areas. It will take time. We are seeing results and the right direction.”