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The Central Government has failed to market the benefits realised from economic reforms, HDFC Bank Chairman CM Vasudev said.
“People don’t relate the good things that are happening in the economy with the reform measures. It is because of reform measures that we have got good automobile revolution, information technology and telecom revolution,” Vasudev told Business Line.
One can build a better constituency for economic reforms only if people are able to relate to the benefits of policies.
“Otherwise there is a big disconnect,” he said, adding that the Government has clearly not focused on communicating better the benefits derived from economic reforms.
Stay the course
India should persist with the private sector-led economic growth strategy and continue to remain on the path of open-market model, Vasudev suggested.
This should be the approach even as pressure is building on the political leadership to change direction and move to a purely socialistic framework, he noted.
More licences welcome
Vasudev, a former Finance Secretary, also said the move to award more banking licences is a welcome step.
“India is relatively under-banked. The share of banking in our GDP is still very small. Giving more bank licences is the only way out. We need new and big banks to extend the reach of the banking sector.”
As for more competition for HDFC Bank if more banking licences are awarded, Vasudev said this should only be good for HDFC Bank.
“More competition is only good for HDFC Bank. Why should HDFC Bank shy away from competition?”
Need for stability
India needs a stable Government and stability is the need of the hour, Vasudev said.
“Any unstable situation will be bad for the economy,” he pointed out.
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