New Delhi, Dec. 8: India Inc hopes the worst is over for the economy, and growth will improve after the general elections.
According to corporate leaders, foreign direct investments (FDI) will rise next year after the elections as global investors will feel secure in dealing with a newly-formed government.
“I am hopeful that next year will be good for the Indian economy as a whole. The first six months will be a little slow, but the whole year will be better. A stable government will help in attracting investors,” said Rahul Bhatia, InterGlobe Enterprises Group managing director and Indigo Airlines promoter.
Stating that the worst in the economy is over, Godrej Industries chairman Adi Godrej recently said economic growth would improve next year and investors would reap benefits in the next 3-5 years. “After the general elections, capex (capital expenditure) cycle will pick up. The worst is behind us. I think India’s GDP growth will improve in the coming year.”
Godrej said this was a good time to invest in India. “This is a great time for foreign institutional investors (FIIs). Those who invest now will reap benefit in 3-5 years.”
The auto industry, which has in the last 10 months been through a tumultuous time, has been pinning hopes on good monsoons and a stable government for a turnaround.
“For the auto sector, it’s a combination of a stable government and good monsoons that would pull the industry out of the rut,” said Vinod Aggarwal, chief executive officer of Volvo Eicher Commercial Vehicles.
The hospitality sector forecasts a slow six months ahead but is confident of growth afterwards. “We believe business will be a little soft in the first six months of next year, but it will pick up afterwards,” said Rajeev Menon, area vice-president, South Asia Marriot International Inc. JW Marriott has already chalked out major expansion plans.