Jul 28, 2021
Long-term prospects for Indian economy continue to be robust, says Aditya Birla Group chairman
Jul 28, 2021
The second wave of COVID-19 may lead to some reassessment of India's economic growth rate in this fiscal, but the country’s long-term prospects continue to be robust, according to Aditya Birla Group chairman Kumar Mangalam Birla, who recently said the silver lining is the lesser severity of disruptions to production and supply chains during the second wave.
Birla said the Indian economy was ‘firmly on the path of recovery’ in the second half of fiscal 2020-21, and then was hit by a rather unexpectedly virulent second wave of the pandemic.
In the latest annual report of group firm UltraTech Cement Ltd, Birla said a pick-up in vaccination would support faster normalisation of mobility levels and of related economic activities.
While the government is to date stuck to its estimate of around 11 per cent gross domestic product (GDP) growth in this fiscal, rating agencies and the Asian Development Bank (ADB) have already cut growth estimates.
"Continued accommodative monetary policy of the RBI [Reserve Bank of India] and the expected increase in capex [capital expenditure] from the government are factors that will support growth recovery," said Birla addressing UltraTech shareholders.
In addition, global growth prospects provide an opportunity for exports as an additional strong driver of growth, he said.
"Various initiatives, including privatisation of public sector enterprises, monetisation of assets, implementation of National Infrastructure Pipeline, targeted investment incentives through the Production-Linked Incentives Scheme and the new Labour Code, are likely to spur a virtuous cycle of investments and growth in the medium term," he added.
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