Despite economic slowdown in H1 of FY 21, India will see double-digit growth: Top Industrialists

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Mumbai: The Central government’s stimulus packages announced throughout the first half of FY 21 will result in India growing in double digits going ahead as against a degrowth estimated earlier, said India’s leading industrialists.

“Looking at the better-than-expected revival in various sectors and due to the government’s stimulus packages announced…we will grow more than 10 per cent,” said founder and chairman of Vedanta Resources Limited, Anil Agarwal, while addressing a session organised industry body, ASSOCHAM on Tuesday.

ASSOCHAM stands for Associated Chambers of Commerce and Industry of India and it is one of the apex trade associations of India.

“The Government has announced various stimulus packages after which I see sectors like steel, cement, power and infra growth rate to be unbelievable at 8 -10 per cent. And steel alone is growing at 11 per cent this quarter, which is quite phenomenal,” said chairman of JSW Group, Sajjan Jindal during the same event.

“India saw growth dipping to 25 per cent in Q1, in Q4 we will see around 10-15 per cent,” Jindal added.

Speaking at an earlier event organised by FICCI, N Chandrasekaran, chairman of Tata Sons said that several high-frequency economic indicators have rebound quickly fuelling optimism in India in the near term.

“The contraction of the economy in the third quarter was also smaller than expected and the GDP growth could accelerate over to 11 per cent in 2022,” Chandrasekaran said.

The pandemic has brought global markets to a standstill and several countries have started to reevaluate building supply chains not just based on cost, but also based on trust, Jindal said.

“Along with affordability and geography, companies while building supply chains are looking for reliability and policy stability and India has these qualities,” Jindal said.

Vedanta’s Anil Agarwal also said that to reach the $5 trillion economy by 2024, the mines that are not operating have to be opened up.

“The maximum revenue comes from the natural resources. We have today around 500 mines that are not operating. Let the production be doubled and if the government wants to have more revenue, increase taxes but let the mines operate,” Agarwal said.

In order to boost manufacturing and make India more competitive, Sajjan Jindal said that some taxes paid by the exporters need to be refunded.

“We urge the government to Implement the RoDTEP (Remission of Duties or Taxes on Export Products) Scheme and it must be fastened to make the export industry competitive. The government’s PLI scheme should be extended to other products as well,” Jindal said.

India’s finance minister, Nirmala Sitharaman also participated at the ASSOCHAM Foundation Week programme. The theme of the programme was ‘India’s resilience: Atmanirbhar roadmap towards $5 trillion economy.

On the upcoming union budget, the finance minister said that momentum on public spending and infra will continue and the multiplier effect will take place.

“We are not going to be rigid…the forthcoming budget will have a vibrancy which is so required for the economy’s sustainable revival,” Sitharaman said.

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