Govt must act as en­abler to re­boot eco: In­dia Inc

‘Coun­try Go­ing Through A Pe­riod Of Re­set’

The Times of India (New Delhi edition) - - Times Global - TIMES NEWS NET­WORK

(From Left): Uday Shankar, chair­man, Star & Dis­ney In­dia; Kal­pana Mor­paria, CEO, South & South East Asia, JP Mor­gan; David Sproul, global deputy CEO, Deloitte; Nitin Gad­kari, Union min­is­ter for road trans­port & high­ways and MSMEs; Su­nil Mittal, chair­man, Bharti En­ter­prises; Nan­dan Nilekani, non-ex­ec­u­tive chair­man, In­fosys; Cyril Shroff, man­ag­ing part­ner, Cyril Amarc­hand Man­gal­das; and Anu Aga, for­mer chair­per­son, Ther­max New Delhi: In­dia Inc’s top lead­ers on Wednes­day said the govern­ment needs to act as a ma­jor en­abler to re­boot the coun­try’s slow­ing econ­omy.

Laud­ing the re­cent ma­jor re­forms, in­clud­ing cor­po­rate tax cuts an­nounced by the govern­ment to re­sus­ci­tate the econ­omy, they made a strong pitch for re­solv­ing credit and de­ci­sion-mak­ing grid­locks and sav­ing ‘na­tional trea­sures’, such as the be­lea­guered Jet Air­ways.

“When a Jet Air­ways goes out of busi­ness, it’s just not one com­pany go­ing out of busi­ness. It is a vi­tal na­tional avi­a­tion struc­ture that has dis­ap­peared overnight. Seven or eight tele­com com­pa­nies have com­pletely gone out of busi­ness,” said Bharti En­ter­prises chair­man Su­nil Mittal.

Dur­ing a panel dis­cus­sion at the ET CEO Round­table on Tack­ling the Slow­down, the lead­ers said In­dia is go­ing through a pe­riod of ‘re­set’,

whether it is adopt­ing GST or go­ing into dig­i­tal mode as far as cur­rency is con­cerned.

“There are global head­winds — you look at Europe and other coun­tries. There is a gen­eral sign of an eco­nomic slow­down. Within In­dia, in the last three to four years, ex­e­cu­tion has been weak. There has been a gen­eral sense of low spend­ing, many projects have been adding in­ven­tory. The morale in lend­ing in­sti­tu­tions has been low and that needs to kick-start. En­able­ment will be the first call of ac­tion for the ex­e­cu­tion to start,” Mittal said.

In­fosys’s non-ex­ec­u­tive chair­man Nan­dan Nilekani said the next big thing on the govern­ment’s agenda should be to re­vive credit to small busi­nesses across In­dia. “Only 8% of In­dian small busi­nesses get

credit from the bank­ing sec­tor. It is due to pub­lic sec­tor banks hav­ing high NPAs and NBFCs hav­ing as­set li­a­bil­ity mis­match. If we do a new cy­cle of credit, we should do it very dif­fer­ently...,” Nilekani said, while re­fer­ring to dig­i­tal modes of trans­ac­tions and ap­pli­ca­tions.

Echo­ing his views, Kal­pana Mor­paria, CEO, South & South East Asia, JP Mor­gan, said, “In this new dig­i­tal world, you will see a par­a­digm shift in the ways banks func­tion.”

“Com­pet­i­tive tax rates are fun­da­men­tal in in­creas­ing FDI. The re­cent tax cuts send a sig­nal that the govern­ment has lis­tened to feedback. This makes it en­cour­ag­ing to in­vest in a mar­ket such as In­dia,” said David Sproul, global deputy CEO of Deloitte.

Other pan­elists at the round­table in­cluded, Uday Shankar, chair­man of Star & Dis­ney In­dia, Anu Aga, for­mer chair­per­son of Ther­max, and Cyril Shroff, man­ag­ing part­ner of law firm Cyril Amarc­hand Man­gal­das.

Am­ren­dra Jha

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