‘Govt on track to kickstart investment cycle’

The BJP-led Government is on track to kickstarting the investment cycle, according to Aditya Puri, Managing Director of HDFC Bank.

In an interview to BusinessLine , Puri emphasised that the government has made all the right moves to put the fiscal house in order, bring inflation under control, and sort out environmental, coal and other issues facing infrastructure projects.

“It is alright to say this has not happened, that has not happened… It is a democracy and everybody has his right to look at it whichever way. But as of today, is there a jump in vehicle (commercial) sales? Yes. That is a harbinger, normally, of a turnaround,” Puri said.

“Capital goods imports have increased. Capital goods orders have increased. The government has started to release payments (to project contractors),” he said. He said that the government has got clear plans to kick-start the investment cycle, which should act as cure for private sector investment to follow. “Monsoon, this year, even in the worst estimates would be better than last year. If they could control the inflation last year, they can control it now. We closed FY2015 GDP growth at 7.3 per cent. FY2016 GDP growth estimates are between 7.6-8 per cent. So, bottom is over. You have not had a major scam at the central level,” explained Puri.

“ Jaisa acche din aayega, hamara bhi accha, accha din aayega (as the economy begins to see good days, we (HDFC Bank) will also see good days,” he said.

Interview:

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