Lauding the measures being taken by the Prime Minister Narendra Modi-led NDA government at the Centre to overcome the stagnancy, TVS chairman and MD, Venu Srinivasan on Friday stated that the government steps to boost the economy were in the right direction.

Responding to a question about a section of industrialists expressing concerns on NDA government's measures to bring the economy back on track, Srinivasan said, "Let's be fair to the new Prime Minister and give him two years' time. The new government had just had its first full budget. It will take time for the reforms to reflect on ground."

Srinivasan mentioned that with the new base of economic growth indicators, "..the GDP growth of the country for next year we should grow at around 7.6 to 7.7 per cent, while a year later it would achieve 8 per cent," he said while speaking to media persons ahead of the Tamil Nadu government's Global Investor Summit road show in Ahmedabad today.

On the two-wheeler market, Srinivasan mentioned that more than the urban economy, rural economy is facing a lot of stress, which there by is affecting the demand. "The support price for grains and unseasonal rains are the two major factors behind the stress in the rural economy," he added.

"This year we expect slower growth in two-wheeler sales as compared to last year because of the stress in the rural economy," said Srinivasan.

According to him, the two-wheeler sales grew at about 9 to 10 per cent in the first half of the last year, but the second half was dull. "This year we expect market to grow by 3-5 per cent," he said adding that this hasn't stopped the investments in the capacity expansion. "We are expanding our capacities by setting up facilities at Himachal Pradesh, Mysore and Hosur," Srinivasan said.

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