Industry body Assocham plans to double the number of its international offices from the current level of 25 to 50 over the next few years, its president Sandeep Jajodia has said.

The new international offices will help facilitate foreign investments into India and act as information centres for foreign investors, Jajodia told BusinessLine in an interview here.

India has seen a significant increase in foreign direct investment (FDI) inflows in recent times. It is estimated that the FDI inflows in the current year could be about $ 50-60 billion.

Domestic plans

Jajodia said that Assocham also wants to expand its network of offices in the country so as to have a pan India presence. “We want to have an all India presence in terms of own offices. We have 9 regional offices now”, he said.

Business climate

Jajodia said that Modi-led government’s policy initiatives have created optimism on economic growth prospects and led to a good investment climate. “I am very bullish about our economy and we are set to take off and create a new India. In three years (since Modi government assumed charge), we have reached the end of the runway and poised to take off with a big bang”, Jajodia said.

Jajodia had special mention about the skilling efforts being undertaken in the country, stating that he had never seen the private sector align with the government to this level ever in the past on this front. At the same time, he also noted that the optimism created in various sectors is yet not fully translated into actual demand. “However, we are on the right path and direction. We are the youngest nation in the world. It’s high time for India to create large global companies. The initiative of start up India and Digital India is going to be the right platform”, he said.

Jajodia also expects private investments to make a comeback in 6-12 months post the bad loan clean up in banks. “Post the clean up of the bad loans, it may take 6-12 months before any visible, substantial growth in credit off take could be seen,” Jajodia said.

Public sector banks’ aggregate credit growth has been muted last fiscal at about 4 per cent. The only sector where there has been robust growth in credit has been affordable housing.

Fears of bankers that their decisions may be questioned by investigation agencies and will come under scanner will be addressed by this ordinance to some extent and the proposed amendment to Prevention of Corruption Act, he said.

On corporate governance, Jajodia agreed that India Inc needs to by and large improve governance. Over the years our companies have grown in unstructured manner and people have not invested in tools to aid them to perfect their governance issues.

Srivats.kr@thehindu.co.in

Published on May 10, 2017