Companies

Private sector is facing challenging times, says L&T Chairman

Our Bureau Mumbai | Updated on August 02, 2019 Published on August 02, 2019

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Replicate Gujarat model, AM Naik advises PM Modi

AM Naik, Chairman of Larsen & Toubro, said that the private sector is undergoing challenging times and “accelerated spending is not likely to happen for eighteen months”.

Addressing shareholders at the AGM, he said, “It is going to take a year or a year-and-a-half before accelerated spending for development comes.”

“The private sector is in challenging times in terms of investment; only one-third are able to keep what they have. A number of companies now need to sell what they have to repay debt,” he stated.

Naik also added that India's GDP growth will be 6.5 per cent this year. “The government had given an estimate of 7 per cent. We will be lucky to achieve that," he added.

He also added that the situation is challenging and questioned the data points on Indian economy. “How much to believe what the government is saying, it is a judgement that one has to make and decide, which is something we do in L&T."

Naik pointed out that India had so far not been able to capitalise on opportunities arising from the US-China trade war. “A number of industries have shifted to Thailand and Vietnam, but why not to India?” he said. “We were busy with elections, and we did not do anything but we should do something now,” he added.

The chairman also added that Prime Minister Narendra Modi should replicate his earlier Gujarat model to expedite clearances for industry.

Published on August 02, 2019
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